Garth is a shareholder in a calendar year S corporation. At the beginning of 2020, his stock basis is $ 20,000, his share of the AAA is $ 4,000, and his share of corporate AEP is $ 12,000. He receives a $17,000 distribution, and his share of S corporation items includes a $ 12,000 long- term capital gain and a $( 7,000) operating loss (i.e. a non-separately stated loss) . Determine the ending balance that Garth has in his stock basis, AEP and AAA

Chandra was the sole shareholder of Pet Emporium, which was originally formed as an S corporation. When Pet Emporium terminated its S election on August 31, 2021, Chandra had a stock basis and an at-risk amount of $0. Chandra also had a suspended loss from Pet Emporium of $9,600. What amount of the suspended loss is Chandra allowed to deduct, and what is her basis in her Pet Emporium stock, at the end of the post-termination transition period under the following alternative scenarios (assume Pet Emporium files for an extension to file its tax returns)? Note: Leave no answer blank. Enter zero if applicable.   a. Chandra makes capital contributions of $7,900 on August 30, 2022, and $4,720 on September 14, 2022.

Nick is the 100% owner of Go Travel, Inc. a calendar year S corporation.  Nick has a $500,000 stock basis as of January 1, 2019.  During 2019, Go Travel had a taxable income of $100,000.   At the end of 2019, Go Travel distributes equipment  FMV $400,000, basis $300,000 to Nick.    What is the taxable income for Nick for 2019? _________________   What is his stock basis at the end of 2019? __________________   What is his basis in the equipment at the end of 2019? _______________     Which of the following events would not terminate the S election? Nick sells some of his stock to Dome Partnership. Nick sells some of his stock to a non-resident alien. Go Travel, Inc. sells newly authorized preferred shares (i.e., preferred as to dividends) to Brian, a U.S. citizen. Nick consents to have the S election voluntarily revoked. Go Travel, Inc. sells newly authorized Class B non-voting common shares to Larry, a U.S. citizen.

A owns 100 shares of Humdrum Corporation which he purchased several years ago for $10,000.  What are the tax consequences to A on the liquidation of Humdrum Corporation in the following alternative situations: (c)  Humdrum distributes $8,000 cash and an installment obligation with a face and FMV of $12,000, payable $1,000 per year for 12 years with market rate interest. The installment obligation was received by Humdrum two months ago, after the adoption of the plan of liquidation, on the sale of a capital asset.  Would the result be different here if the stock were publicly traded?   (d)  What result in (a), above, if two years later, A is required to pay a $5,000 judgment against Humdrum in his capacity as a transferee of the corporation.  Compare this with the result if the judgment had been rendered and paid by the corporation prior to the liquidation.

Jay owns 100% of Kaye Company.  In 2020, Kaye Company recognizes a long-term capital gain (LTCG) of $100,000.  Kaye Company has no other income or loss.  Assume that Jay (an individual) is in the 37% tax bracket and has no recognized capital gains or losses in 2020. How much tax will Kaye Company owe on the $100,000 LTCG if Kaye Company is a sole proprietorship?

Chris is the 100% shareholder of the Denture Corporation, an S corporation, and has a basis of $10,000 in the stock as of January 1, 2019.  Chris also made a $15,000 loan to Denture Corporation as of January 1, 2019.  During 2019, Denture Corporation had a $5,000 capital gain, made a $2,000 cash distribution to Chris, and incurred a $20,000 ordinary taxable loss. a) What is Chris’ stock basis at the end of 2019? _____________________ b) What is his loan basis at the end of 2019? ______________________

Vikram

Suppose that at the beginning of 2022 SH's basis in his S corporation stock was $28,500 and SH has directly loaned the S corporation $9,980. During 2022, the S corporation reported an $80,200 ordinary business loss and no separately stated items. How much of the ordinary loss is deductible by SH if he owns 50 percent of the S corporation? Type your answer...

Fannie has been the sole (one hundred percent (100%)) shareholder of Beola Corporation, a calendar year S Corporation, since 1981. At the end of 2023, Fannie's basis in her stock is $36,800 and she receives a distribution of $44,400 from Beola Corporation. Corporate level accounts of Beola Corporation are as follow: Accumulated Adjustments Account (AAA)-$18,900; Previously Taxed Income (PTI) - $8,200; Accumulated Earnings And Profits (AEP)- $3,600. How is Fannie taxed on the distribution? OAS-0-Taxable Dividend and a $-0- Long-Term Capital Gain. A $3,600 Taxable Dividend. A $3,600 Taxable Dividend and a $9,700 Long-Term Capital Gain. A $3,600 Taxable Dividend and a $4,000 Long-Term Capital Gain. 4

Globe Company, a real estate developer, is owned by five founding shareholders.On December 1, 2019, the entity declared a property dividend of a "one-bedroom flat" for each shareholder. The property dividend is payable on January 31, 2020.On December 1, 2019, the carrying amount of a one-bedroom flat is P1,000,000 and the fair value is P1,500,000.However, the fair values is P1,800,000 on December 31, 2019 and P1,900,000 and January 31, 2020.   1. What amount should be recorded as dividend payable on December 1, 2019? 2.  What amount should be reported as dividend payable on December 31, 2019?