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  3. 29. during 2011, nick, a sole shareholder of a cal

29. During 2011, Nick, a sole shareholder of a calendar year S Corporation, received a...

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29. During 2011, Nick, a sole shareholder of a calendar year S Corporation, received a distrioution of $a5,000. On December 31, 2010, his stock basis was $17,000. The corporation earned 570,000 ordinary income during the year. It has no accumulated E&P. Which statement is correct? A. Nick recognized $10,000 LTCG B. Nick's return of capital is $2,000. C. Nick's stock basis is $42,000. D. None of the above. 30: Tony has been the sole shareholder of a calendar year s corporation. At the end of 2011, Tony's stock basis is $45,500, and he received a distribution of $47,000. Corporate level accounts are as follows: $12,000 $4,000 PTI Accumulated E&P $1,300 How much capital gain, if any, will Tony recognize? a. $200 b. $600 C. $900 d. $1,500

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