Darcy is a 40% shareholder in McKinnon, an S corporation. In…
Darcy is a 40% shareholder in McKinnon, an S corporation. In the current year, McKinnon reports ordinary income of $36,000, §179 expense of $10,000, and qualified dividend income of $6,000. McKinnon made a $10,000 distribution to Darcy and Darcy had beginning of the year stock basis of $30,000. Determine Darcy’s ending stock basis.
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