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Question: On January 1, Jim purchased 50 shares of Potomac Corporation stock for $50,000. Potomac is a calendar year S corporation and Jim's share of the company's earnings for the year is $20,000. His separately stated items include $6,000 in long-term capital gains and $7,000 of Section 1231 losses. In addition, Potomac distributes $10,000 in cash to Jim during the year. What is Jim's basis in Potomac at the end of the year?
The operating income for the year-end December 31, 2021 amounted to P200,000. Provide for the solution on the computation of the Bonus
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