Crossroads Corporation Distributes $60,000 to Its Sole Shareholder Harley

Question 14
Multiple Choice

Crossroads Corporation distributes $60,000 to its sole shareholder Harley.Crossroads has earnings and profits of $55,000 and Harley's basis in her stock is $20,000.After the distribution,Harley's basis is A) $5,000. B) $15,000. C) $20,000. D) $60,000.