Keeping track of shareholder


Question 1. Keeping track of shareholder basis in S-Corporation stock is the responsibility of

a.    the corporation
b.    the shareholder

Question 2. Knowing the basis in the stock is important

a.    for limiting the amount of loss a shareholder can deduct
b.    for limiting the amount of gain a shareholder must report

Question 3. A non-taxable distribution to a shareholder

a.    increases basis in the stock
b.    decreases basis in the stock
c. neither

Question 4. Shareholder basis is affected by

a.    a loan directly from the shareholder to the corporation
b.    a personal guarantee on a bank loan to the corporation
c.    both

Question 5. Giving a note to a corporation for the purchase of additional shares

a.    increases shareholder basis
b.    does not increase shareholder basis

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Finance Basics: Keeping track of shareholder
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