On January 1 of this year, Conrad Nelson contributed $15,000 cash in exchange for 50 shares of stock in Sterling Inc., an S corporation. Sterling employs Conrad as its director of marketing. Conrad's current year salary was $70,000 and his pro rata share of Sterling's ordinary business income was $16,800. During the year, Conrad received a $9,000 cash distribution with respect to his Sterling stock. Compute Conrad's basis in his Sterling stock at year end.
A. $15,000
B. $22,800
C. $92,800
D. $31,800
Answer: B
You might also like to view...
Prior to social media’s widespread use, highly rated television programs were the topics of which of the following on mornings after a program aired?
A. waterboard conversations B. watercooler conversations C. watergate conversations D. water-sprinkler conversations
Based on a report issued by American Express and Millennial Branding, which of the following is often cited by managers as a negative trait attribute of young workers?
A) Strong interpersonal interactions B) Soft skills regarding communication C) Excessive self confidence D) Willingness to work as a team E) Ability to multitask
During Year 9, Hart Motors Corp had a net $100,000 decrease in Warranties Payable. The T-account work sheet for preparing the statement of cash flows
a. adds this decrease in Warranties Payable so that cash flow from operations reports cash expenditures, not expenses. b. subtracts this decrease in Warranties Payable so that cash flow from operations reports cash expenditures, not expenses. c. adds this decrease in Warranties Payable so that cash flow from operations reports cash expenses, not expenditures. d. subtracts this decrease in Warranties Payable so that cash flow from operations reports cash expenses, not expenditures. e. subtracts this decrease in Warranties Payable so that cash flow from financing reports cash expenses, not expenditures.
Dartmouth Company has an quick ratio of 2.5 to 1. It has current liabilities of $40,000 and noncurrent assets of $70,000. If Dartmouth's current ratio is 3.1 to 1, its inventory and prepaid expenses must be
A) $12,400 B) $24,000 C) $30,000 D) $40,000