How much is lori''s basis in her remaining stock


Med Inc. had one class of stock outstanding. The one class of stock was owned 50 percent by Lori and 25 percent by each of Lori's parents. In the current taxable year, Med Inc. redeemed 25 percent of Lori's 50 percent, and in exchange for the stock, Med Inc. distributed to Lori a building that had an adjusted basis to Med Inc. of $10,000 and a fair market value of $50,000. Assume that Med Inc.'s current earnings and profits were $200,000, there were no accumulated earnings and profits, and Lori's total basis in her stock before the redemption was $20,000. How much is Lori's basis in her remaining stock after the redemption, and what is her basis in the building?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: How much is lori''s basis in her remaining stock
Reference No:- TGS062980

Expected delivery within 24 Hours