FINANCE MISC

Pueblo Community College

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FINANCE MISC Test 4 Study Guide Latest 2022/2023
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32

abril 2023

2022/2023

A+
1. On January 1 of the first year of operation, an investor paid $10,000 for a 20% interest in Biga, an S corporation. During the same year, Biga earned $10,000 taxable income and $2,000 tax-exempt interest. Biga paid dividends totaling $1,000 to its shareholders during the same year. What is the investor’s tax basis in the shares of Biga at the end of the year? $12,200 2. On January 1, 2019, Terry purchased 50% of Halt, an S corporation, for $150,000. At the end of 2019, Halt incurr...
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