Determine lizzies stock basis at the end of the year and, Ask an Expert

Accounting

At the beginning of the tax year, Lizzie holds a $10,000 stock basis as the sole shareholder of Spike, Inc., an S corporation. During the year, Spike reports the following.

Determine Lizzie's stock basis at the end of the year, and the treatment of her cash distribution.

Net taxable income from sales $ 25,000
Net short-term capital loss (18,000)
Cash distribution to Lizzie, 12/31 15,000

Could you make sure to answer in your own words.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M939837

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