What is Alexander’s net gain or loss on the liquidation of his 100

1. What is Alexander’s net gain or loss on the liquidation of his 100 percent interest in an S corporation if the corporation distributes the following three assets to him in exchange for his stock:Asset FMV Adj. BasisInventory $20,000 $13,000 7,000Machines $50,000 $60,000 (10,000)Building $100,000 $75,000 25,000170,000 148,000 22,000Prior to any distributions, Alexander’s basis in his S corporation interest was $160,000.($12,000)($22,000)$10,000$22,000None of the above2. Corbin has a $15,000 basis in his 50 percent ownership in an S corporation and lent the corporation $5,000 last year. The corporation has $30,000 of other debt. This year the corporation reported a $100,000 loss. How much of this loss may Corbin deduct? (Points : 5)$15,000$20,000$35,000$50,000Basis 15,000Ownsership 50%Lent 5,000Corporation Debt 30,000 15,000Loss 100,000 (50,000)3. The accumulated adjustment account (Points : 5)is a shareholder account.can be reduced below zero by an excess distribution.determines when there is a tax-free distribution during the post-termination period.is important in applying loss limitation rules.4. Which of the following is not a requirement to make an S election? (Points : 5)Maximum 100 shareholdersOne class of stockShareholders must be citizensIt must be a domestic corporation5. An S election terminates (Points : 5)when a shareholder dies.when there is a nonresident alien shareholderwhen the S corporation invests in a C corporationwhen an S corporation has excess passive income6. Which of the following does not affect the basis of S corporation stock? (Points : 5)Tax-exempt incomeNondeductible expensesCharitable contributionsCapital gainsAll affect stock basis7. The S corporation income tax return includes all of the following except (Points : 5)a Schedule K.an M-1 Schedule.a retained earnings reconciliation.a reconciliation of the AAA account.4. Walter owns and manages his 50 percent interest in a rental apartment complex. His AGI for the current year is $110,000 excluding his portion of the $70,000 loss from the apartment complex. What is his loss carryover? (Points : 1)0$15,000$25,000$35,000