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Miyasyke, Inc., a calendar year S corporation, has five equal
shareholders at the end of the tax year. Miyasyke had
$75,000 of taxable income. Miyasyke made distributions to its
shareholders of $32,000 each, for a total of $160,000. Each
shareholder's basis in the S corporation is $100,000 at the
beginning of the tax year. What amount from Miyasyke should be
included in each shareholder's gross income?
A sole proprietorship incorporated on January 1 and elected S
corporation status. The owner contributed the following assets to
the S corporation:
Two years later, the corporation sold the machinery for $4,000 and
the building for $110,000. The machinery had accumulated
depreciation of $2,000, and the building had accumulated
depreciation of $1,000. What is the built-in gain recognized on the
sale?
Which of the following items must be separately stated on Form
1120S, U.S. Income Tax Return for an S Corporation, Schedule K-
1?
For which of the following entities is the owner's basis increased by
the owner's share of profits and decreased by the owner's share of
losses, but is not affected by the entity's bank loan increases or
decreases?
Frank is a 1/3 shareholder in an S corporation. At the beginning of
the year, Frank's basis in his S corporation stock was $10,000.
Frank's share of the S corporation items of income included
$35,000 of income from operations, $1,000 of charitable
contributions, and $1,000 of capital gains. During the year, Frank
also contributed $15,000 of additional capital and received a $3,000