Gordon Is the Sole Shareholder of Whitman Corporation, an S

Essay

Gordon is the sole shareholder of Whitman Corporation, an S corporation. At the beginning of the year, Gordon's basis in his Whitman stock is $100,000. During the year, Whitman Corporation has operating income of $50,000; dividends from domestic corporations of $15,000; tax-exempt interest of $5,000; nontaxable life insurance proceeds of $10,000 on the death of a key employee; and a capital loss of $15,000. Whitman pays no dividends. What is Gordon's year-end basis in Whitman stock (after the distribution)?