29. During 2011, Nick, a sole shareholder of a calendar year S Corporation, received a...
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29. During 2011, Nick, a sole shareholder of a calendar year S Corporation, received a distribution of $45,000. On December 31, 2010, his stock basis was $17,000. The corporation earned 70,000 ordinary income during the year. It has no accumulated E&P. Which statement is correct? A. Nick recognized $10,000 LTCG. B. Nick's return of capital is $2,000. C. Nick's stock basis is $42,000 D. None of the above. 30. Tony has been the sole shareholder of a calendar year s Corporation. At the end of 2011, Tony's stock basis is $45,500, and he received a distribution of $47,000. Corporate level accounts are as follows: $12,000 4,000 $1,300 PTI Accumulated E&P How much capital gain, if any, will Tony recognize? a. $200 b. $600 c. $900 d. $1,500
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