Rayburn Owns All the Shares of Newcastle Corporation That Operates

Multiple Choice

Rayburn owns all the shares of Newcastle Corporation that operates as an S corporation.Rayburn's basis in the stock is $15,000.During the year he receives a cash distribution of $22,000 from Newcastle.What must Rayburn and Newcastle report as income from the cash distribution?
Rayburn Newcastle

A) $-0- $-0-
B) $7,000 $-0-
C) $-0- $7,000
D) $7,000 $7,000