Question - You are given the following facts about a one-shareholder S corporation, and you are asked to prepare the shareholder's ending stock basis.
Ordinary income $100,000
Payroll tax penalty 2,140
Stock purchases 32,000
Tax-exempt insurance proceeds 50,000
Insurance premiums paid (nondeductible) 2,700
Beginning stock basis 36,800
a. $163,960.
b. $181,960.
c. $213,960.
d. $216,100.