During the year, Miles Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. Atthe end of last year, his stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has noaccumulated E & P. Which statement is correct?

a. Nutt recognizes a $1,000 LTCG.
b. Nutt’s stock basis is $2,000.
c. Nutt’s ordinary income is $15,000.
d. Nutt’s tax-free return of capital is $11,000.

11.     before adding cream to a simmering soup, you need to a. simmer the cream. b. chill the cream. c. strain the cream through cheesecloth. d. allow the cream reach room temperature. student d   incorrect which answer is right?

Acorporation a. can use different depreciation methods for tax and financial reporting purposes b. must use the straight - line depreciation method for tax purposes and double declining depreciation method financial reporting purposes c. must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes d. can use straight- line depreciation method for tax purposes and macrs depreciation method financial reporting purposes

Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. in this case, the country that produces jeans will produce million pairs per week, and the country that produces corn will produce million bushels per week.