I understand that S corps report items separately. For the question below, does anyone know how the question would be different if it were relating to the "distributed" amount of $100K?
Q) Bob has a 40% interest in S corp. At the beginning of the year, Bob's basis in S corp was $2K. During the year, S corp distributed $100K and reporting operating income of $200K. What amount should Evan include in gross income?
A) Operating Income * ownership % = $200k * 40% = $80K.
So again, my question is
1) What would the question say if I were to use the $100K instead of $200K?
2) In what case would I use Bob's basis of $2K in this type of question?
Thanks!
B - (4/2012)
A - (5/2012)
R - (1/2012) Done!
F - (10/2011) Done!
A - (5/2012)
R - (1/2012) Done!
F - (10/2011) Done!
