Stahl, an individual, owns 100% of Talon, an S corporation. At the beginning of the year, Stahl's basis in Talon was $65,000. Talon reported the following items from operations during the current year: Ordinary loss Municipal interest income Long-term capital gain Short-term capital gain $10,000 $6,000 $4,000 $9,000 What was Stahl's basis in Talon at year-end? a. $56,000 b. $50,000 c. $61,000 d. $55,000
Stahl, an individual, owns 100% of Talon, an S corporation. At the beginning of the year, Stahl's basis in Talon was $65,000. Talon reported the following items from operations during the current year: Ordinary loss Municipal interest income Long-term capital gain Short-term capital gain $10,000 $6,000 $4,000 $9,000 What was Stahl's basis in Talon at year-end? a. $56,000 b. $50,000 c. $61,000 d. $55,000
Chapter12: S Corporations
Section: Chapter Questions
Problem 27P
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Transcribed Image Text:Stahl, an individual, owns 100% of Talon, an S corporation. At the beginning of the year, Stahl's basis in
Talon was $65,000. Talon reported the following items from operations during the current year:
Ordinary loss
Municipal interest income
Long-term capital gain
Short-term capital gain
$10,000
$6,000
$4,000
$9,000
What was Stahl's basis in Talon at year-end?
a. $56,000
b. $50,000
c. $61,000
d. $55,000
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