Reference no: EM131867996
Don, a shareholder of Meadow Brook Corporation, an S corporation, owned 20% of the stock for 292 days and 25% of the stock for the remaining 73 days in the year. Her stock basis at the beginning of the year was $32,000 and she purchased an additional $9,000 of stock this year. Given the amount of income and deductions listed below, compute Don’s share of each item.
Ordinary income: $80,000
Tax-exempt interest income: 3,000
Salary paid to Dion: -52,000
Charitable contributions: -6,000
Dividends received: 5,000
Short-term capital loss: -6,000
Refund of prior state income taxes: 5,000
LTCL: -7,000
LTCG: 14,000
What are Don’s shares of ordinary income and separately stated items for the year? What is Don’s adjusted basis in her S stock at year-end?