1371. CHAPTER 12—S CORPORATIONS Question CO #25 Distribution of _________________ property by an S corporation to a shareholder generally should be avoided. 1372. CHAPTER 12—S CORPORATIONS Question CO #26 Depletion in excess of basis in property causes a(n) ____________________ adjustment to an S shareholder’s basis. 1373. CHAPTER 12—S CORPORATIONS Question CO #27 Stock basis first is increased by income items then ____________________ by distributions and finally decreased by ____________________. 1374. CHAPTER 12—S CORPORATIONS Question CO #28 If an S corporation shareholder’s basis in a loan to the entity has been reduced the shareholder recognizes gross income when the S corporation ____________________ the shareholder. 1375. CHAPTER 12—S CORPORATIONS Question CO #29 With respect to passive losses there are three classes of income losses and credits: ____________________ ____________________ and passive. 1376. CHAPTER 12—S CORPORATIONS Question CO #30 An S corporation’s LIFO recapture amount equals the excess of the inventory’s value under ____________________ over the ____________________ value. 1377. CHAPTER 12—S CORPORATIONS Question PR #1 Janet Wang is a 50% owner of a calendar year S corporation. During 2011 the S corporation has ordinary income of $175 000 short-term capital gain of $94 000 tax-exempt income of $22 000 and a charitable contribution of $18 000. What S corporation items must Janet report in 2011? . 1378. CHAPTER 12—S CORPORATIONS Question PR #2 Simmen Inc. a calendar year S corporation incurred the following items in 2011. Municipal bond interest $ 6 200 Sales 122 000 § 1245 gain 11 000 Long-term capital gain 16 000 Cost of goods sold 39 000 Administrative expenses 15 000 Depreciation expenses 18 000 Charitable contribution 12 000 Calculate Simmen’s nonseparately computed income. 1379. CHAPTER 12—S CORPORATIONS Question PR #3 Bidden Inc. a calendar year S corporation incurred the following items. Sales $130 000 Depreciation recapture income 12 000 Short-term capital gain 30 000 Cost of goods sold (42 000) Municipal bond interest income 7 000 Administrative expenses (15 000) Depreciation expense (17 000) Charitable contributions (14 000) Calculate Bidden’s nonseparately computed income. 1380. CHAPTER 12—S CORPORATIONS Question PR #4 Gene Grams is a 45% owner of a calendar year S corporation during 2011. His beginning stock basis is $230 000 and the S corporation reports the following items. Ordinary income $64 000 Short-term capital gain 16 000 § 1231 loss 6 000 Tax-exempt interest income 5 000 Calculate Grams’ stock basis at year-end.
