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Cactus​ Corporation, an S​ corporation, had accumulated earnings and profits of​ $100,000 at the beginning of 2017. Tex and Shirley each own​ 50% of the stock and have a basis in their stock of​ $50,000 on January​ 1, 2017. Cactus does not make any distributions during​ 2009, but had​ $200,000 of ordinary income. In​ 2018, ordinary income was​ $100,000 and distributions were​ $100,000. What is​ Tex's basis at January​ 1, 2019?

User Jdehlin
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Answer:

the correct answer is

$100,000

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Step-by-step explanation:

User Kumiko
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