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Problem 1: Amos and Thomas form the Show Corporation during the current year. Amos owns 40% of Show's stock, Thomas owns 20%, and unrelated parties own the remaining 40%. Amos paid $50,000 for his shares, and Thomas paid $20,000. Amos and Thomas are responsible for Show's daily operations and serve as co-chief executive officers. During the current year, Show Corporation has an operating income of $60,000 and pays out $10,000 in dividends. What are Amos' and Thomas's adjusted bases in the Show Corporation stock if the Show Corporation is organized as a C corporation? Group of answer choices
Option 1: $74,000 for Amos and $32,000 for ThomasOption 2: $50,000 for Amos and $25,000 for ThomasOption 3: $50,000 for Amos and $20,000 for ThomasOption 4: $70,000 for Amos and $20,000 for Thomas
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