Epstein is the sole shareholder of Cubbies Inc

Finance Dec 02, 2020

Epstein is the sole shareholder of Cubbies Inc. Cubbies Inc. is treated as an S Corporation for tax purposes. Cubbies Inc. had the following items reported on Epstein’s K-1: share of ordinary income $22,000; dividend income $500; tax exempt interest $250; share of non-deductible expenses $760; distributions of $15,000. Assume Epstein’s beginning stock basis for the year was $2,800. Determine Epstein’s ending balance of his stock basis in Cubbies Inc.

Expert Solution

Particulars	Amount
Beginning basis	2,800
Ordinary income	22,000
Dividend	500
Interest	250
Expenses	(760)
Distribution	(15,000)
Ending stock basis	9,790

Answer is:

9,790

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote