Janna had a tax basis of $19,000 in her Mimikaki stock (Mimikaki has been an S...

Janna had a tax basis of $19,000 in her Mimikaki stock (Mimikaki has been an S corporation since inception). In 2018, Janna was allocated $24,000 of ordinary income from Mimikaki.

What is the amount and character of gain she recognizes from end of the year distributions in each of the following alternative scenarios, and what is her stock basis following each distribution? (Leave no answer blank. Enter zero if applicable.)

a. Mimikaki distributes $12,000 to Janna.

b. Mimikaki distributes $24,000 to Janna.

c. Mimikaki distributes $36,000 to Janna.

d. Mimikaki distributes $48,000 to Janna.

Solutions

Expert Solution

Janna has an assessment premise of $15,000 in her Mimikaki stock (Mimikaki has been a S organization since commencement). In 2010, Janna was allotted $20,000 of °canary pay from Mimikaki. What is the sum and character of gain she perceives from year's end conveyances in every one of the accompanying elective situations, and what is her stock premise following every appropriation? a. Mimikaki circulates $10,000 to Janna. At the season of the conveyance, Janna's stock premise is $35,000 ($15,000 unique premise in addition to $20,000 normal i,iwme allotment). On the dissemination, Janna perceives SO gain, and the appropriation lessens her stock premise to $25,000 ($35,000 stock premise short $10,000 circulation). b. Mimikaki disseminates $20,000 to Janna. At the season of the circulation, Janna's stock premise is $35,000 ($15,000 unique premise in addition to $20,000 common ibwme assignment). On the circulation, Janna perceives SO gain, and the dispersion diminishes her stock premise to $15,000 ($35,000 stock premise short $20,000 conveyance). c. Mimikaki appropriates $30,000 to Janna. At the season of the dispersion, Janna's stock premise is $35,000 ($15,000 unique premise in addition to $20,000 conventional ibwme distribution). On the appropriation, Janna perceives SO gain and the dispersion lessens her stock premise to $5,000 ($35,000 stock premise less $30,000 circulation).

d. Mimikaki appropriates $40,000 to Janna. At the season of the dissemination, Janna's stock premise is $35,000 ($15,000 unique premise in addition to $20,000 normal ibwme assignment). On the dissemination, Janna perceives $5,000 gain, and the circulation decreases her stock premise to SO.

ekkarill92 answered 1 year ago

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