Oscar Buys a 10% Interest in Britanny Corporation Paying $92,000

Multiple Choice

Oscar buys a 10% interest in Britanny Corporation paying $92,000 cash on January 1,2012.During 2012,Britanny Corporation reports a loss of $30,000 and pays cash dividends to shareholders of $10,000.For 2013,Britanny Corporation has a loss of $60,000 and pays cash dividends of $20,000.If Britanny Company is organized as an S Corporation,Oscar's basis in the Britanny Corporation stock at the end of 2013 is:

A) $ 80,000
B) $ 86,000
C) $ 92,000
D) $ 98,000
E) $ 104,000