An individual contributes property and cash of $15000 to a corporation in a 351 exchange....
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Accounting
An individual contributes property and cash of $15000 to a corporation in a 351 exchange. The individual is the sole shareholder. The property has a basis of $15000, and a fair market value of $50000. The corporation then elects to be taxed as an S-corporation. At the end of the S-corporation's first year, it has non-separately stated income of $50000. What is the shareholder's basis in the s-corporation after year 1?
A.30,000 B.80,000 C.50,000 D. 0
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