Bryan Corporation, an S corporation since its organization, is owned entirely by Mr. Bryan. The corporation uses a calendar year as its taxable year. Mr. Bryan paid $120,000 for his Bryan stock when the corporation was formed on January 1 of this year. For this year, Bryan Corporation reported the following results: Distributions of $40,000 were made during the year. What is the basis of Mr. Bryan's stock on December 31?
A)$163,000
B)$165,000
C)$203,000
D)$205,000

Question

Bryan Corporation, an S corporation since its organization, is owned entirely by Mr. Bryan. The corporation uses a calendar year as its taxable year. Mr. Bryan paid $120,000 for his Bryan stock when the corporation was formed on January 1 of this year. For this year, Bryan Corporation reported the following results:  Distributions of $40,000 were made during the year. What is the basis of Mr. Bryan's stock on December 31?
A)$163,000 
B)$165,000 
C)$203,000 
D)$205,000

Quizplus · Accepted Answer

The Answer of Bryan Corporation, an S corporation since its organization, is owned entirely by Mr. Bryan. The corporation uses a calendar year as its taxable year. Mr. Bryan paid $120,000 for his Bryan stock when the corporation was formed on January 1 of this year. For this year, Bryan Corporation reported the following results:  Distributions of $40,000 were made during the year. What is the basis of Mr. Bryan's stock on December 31?
A)$163,000 
B)$165,000 
C)$203,000 
D)$205,000

Bryan Corporation, an S Corporation Since Its Organization, Is Owned