What is craig end of year stock basis

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Reference no: EM132784182

Mack S corporation is owned 50/50 by Mackenzie and Craig. At the beginning of the year Mack's stock basis was $40,000 and Craig's stock basis was $10,000. Craig loaned the entity $40,000 during the year. Mackenzie made a new capital contribution to the entity of $30,000. The entity made $50,000 cash distribution to Mackenzie and $50,000 cash distribution to Craig.

In addition it reported the following total activity:

Ordinary Business Income $338,00

Long Term Capital Gain 8,000

Charity Contribution 10,000

Dividend Income 5,000

Tax Exempt Interest Income 3,000

Problem 1: What is Craig's end of year stock basis?

Reference no: EM132784182

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