Solved by verified expert :1371. CHAPTER
12—S CORPORATIONS Question CO #25
Distribution of _________________ property by an S corporation to a shareholder
generally should be avoided.
1372. CHAPTER
12—S CORPORATIONS Question CO #26
Depletion in excess of basis in property causes a(n) ____________________
adjustment to an S shareholder’s basis.
1373. CHAPTER
12—S CORPORATIONS Question CO #27
Stock basis first is increased by income items, then ____________________ by
distributions, and finally decreased by ____________________.
1374. CHAPTER
12—S CORPORATIONS Question CO #28
If an S corporation shareholder’s basis in a loan to the entity has been
reduced, the shareholder recognizes gross income when the S corporation
____________________ the shareholder.
1375. CHAPTER
12—S CORPORATIONS Question CO #29
With respect to passive losses, there are three classes of income, losses, and
credits: ____________________, ____________________, and passive.
1376. CHAPTER
12—S CORPORATIONS Question CO #30
An S corporation’s LIFO recapture amount equals the excess of the inventory’s
value under ____________________ over the ____________________ value.
1377. CHAPTER
12—S CORPORATIONS Question PR #1
Janet Wang is a 50% owner of a calendar year S corporation. During 2011, the S
corporation has ordinary income of $175,000, short-term capital gain of
$94,000, tax-exempt income of $22,000, and a charitable contribution of
$18,000. What S corporation items must Janet report in 2011?
.
1378. CHAPTER
12—S CORPORATIONS Question PR #2
Simmen, Inc., a calendar year S corporation, incurred the following items in
2011.
Municipal
bond interest
$ 6,200
Sales
122,000
§ 1245 gain
11,000
Long-term
capital gain
16,000
Cost of
goods sold
39,000
Administrative
expenses
15,000
Depreciation
expenses
18,000
Charitable
contribution
12,000
Calculate Simmen’s nonseparately computed income.
1379. CHAPTER
12—S CORPORATIONS Question PR #3
Bidden, Inc., a calendar year S corporation, incurred the following items.
Sales
$130,000
Depreciation
recapture income
12,000
Short-term
capital gain
30,000
Cost of
goods sold
(42,000)
Municipal
bond interest income
7,000
Administrative
expenses
(15,000)
Depreciation
expense
(17,000)
Charitable
contributions
(14,000)
Calculate Bidden’s nonseparately computed income.
1380. CHAPTER
12—S CORPORATIONS Question PR #4
Gene Grams is a 45% owner of a calendar year S corporation during 2011. His
beginning stock basis is $230,000, and the S corporation reports the following
items.
Ordinary
income
$64,000
Short-term
capital gain
16,000
§ 1231 loss
6,000
Tax-exempt
interest income
5,000
Calculate Grams’ stock basis at year-end.
