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Business, 29.05.2020 16:59 corrineikerd

Mark owns 50% of an S corporation, Wick, Inc., and has a basis in that corporation of $3,000 at the beginning of Year 1. At the end of Year 1, Wick reports ordinary income of $2,000 (before considering distributions) and makes a distribution to Mark of a truck with an adjusted basis of $5,000 and a fair market value of $7,000. How much income must Mark report on his personal Year 1 return as a result of this distribution

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Mark owns 50% of an S corporation, Wick, Inc., and has a basis in that corporation of $3,000 at the...
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