Business, 20.12.2019 22:31 girl88

Cactus corporation, an s corporation, had accumulated earnings and profits of $100,000 at the beginning of 2017. tex and shirley each own 50% of the stock and have a basis in their stock of $50,000 on january 1, 2017. cactus does not make any distributions during 2017, but had $200,000 of ordinary income. in 2018, ordinary income was $100,000 and distributions were $100,000. what is tex's basis at january 1, 2019?

a) $100,000
b) $150,000
c) $200,000
d) $250,000

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Cactus corporation, an s corporation, had accumulated earnings and profits of $100,000 at the beginn...

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