At the beginning of the year, Clampett, Inc., had $100,000 in its AAA and $60,000 of earnings and profits from prior C corporation years. During the year, Clampett, Inc., earned $50,000 of ordinary income and paid $200,000 in distributions to its shareholders. Assume that J.D. owns 25 percent of Clampett, Inc., his basis in Clampett, Inc., at the beginning of the year is $30,000, and his share of the distribution was $50,000. What is J.D.'s basis in the Clampett, Inc., stock after these transactions?
A. $15,000.
B. $5,000.
C. $0.
D. $12,500.
E. None of the choices are correct.
Answer: B
You might also like to view...
On September 30, the Sorting Department of Java Works had ending Work-in-Process Inventory of 30,000 units that was 46% complete for materials and 36% complete for conversion costs. The company uses the FIFO method. This means that for the beginning Work-in-Process Inventory, ________% of the materials and ________% of conversion costs were added during October.
A) 46; 36 B) 64; 54 C) 54; 64 D) 36; 46
Lewin referred to ______ as a model to capture the idea that the research projects at their core always had both pragmatic and theoretical components, and that rigorous scientific methods could be used to gather data about groups and to intervene in their processes.
a. laboratory training b. action research c. survey feedback d. management practices
In successful teams, leadership is likely to be shared, which requires more direct and effective communication within the organization
Indicate whether the statement is true or false
A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period? Unadjusted Trial Balance Adjustments Debit Credit Debit Credit??Cash975 ??Accounts receivable 300 Prepaid insurance3,600 150Supplies180 70Equipment10,320 Accumulated depreciation?equipment 190Accounts payable 1,140 Salaries payable 315Unearned fees 4,500 375 Retained earnings 9,180 Dividends1,650 Fees earned 5,850 375 300Rent expense1,500 Salaries expense2,100 315 Utilities expense345 Insurance expense 150 Supplies expense 70 Depreciation
expense?equipment 190 Totals20,670 20,670 1,400 1,400 A. $4,670. B. $1,400. C. $1,855. D. $1,905. E. $2,060.