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coldgirl [10]
2 years ago
11

Greene is the sole shareholder of Seagull, a calendar-year S corporation. Greene's basis at the beginning of the year is $15,000

. Seagull reported an ordinary loss of $5,000 and $2,000 of municipal bond interest for the year. Seagull distributed cash of $6,000 to Greene on November 1. What is Greene's basis in Seagull at the end of the year?
Business
1 answer:
shutvik [7]2 years ago
8 0

Answer:

Greene's basis at Seagull is $6,000

Explanation:

Greene's basis in Seagull can be calculated using the following equation:

  • Greene's basis = basis at the beginning of the year - ordinary loss - cash distributions + interest earned

Greene's basis = $15,000 - $5,000 - $6,000 + $2,000 = $6,000

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The economy is in a recession. The government enacts a policy to increase spending by $2 billion. The MPS is 0.2. What would be
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