Janna had a tax basis of $15,250 at the end of 2016 in her Mimikaki...
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Accounting
Janna had a tax basis of $15,250 at the end of 2016 in her Mimikaki stock (Mimikaki has been an S corporation since inception). In 2017, Janna was allocated $20,250 of ordinary income from Mimikaki. What is the amount and character of gain she recognizes from end of the year distributions in each of the following alternative scenarios, and what is her stock basis following each distribution? (Leave no answer blank. Enter zero if applicable.)
a. Mimikaki distributes $10,125 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
b. Mimikaki distributes $20,250 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
c. Mimikaki distributes $30,375 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
d. Mimikaki distributes $40,500 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
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