Corporate profits have no effect on a C corporation shareholder's stock basis,but will increase an S corporation shareholder's stock basis.

Name: Corporate profits have no effect on a C corporation shareholder's stock basis,but will increase an S corporation shareholder's stock basis.
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Question

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Profits of a C corporation have no effect on the shareholder's stock basis.However,under the conduit concept,profits increase an S corporation shareholder's stock basis.

Corporate Profits Have No Effect on a C Corporation Shareholder's