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Ichigo is the sole shareholder of Dave & Buster's Inc. Ichigo’s basis at the beginning of...

Ichigo is the sole shareholder of Dave & Buster's Inc. Ichigo’s basis at the beginning of the year is $68,000. D&B reported an ordinary loss of $25,000 and $20,000 of municipal bond interest for the year. D&B's also distributed cash of $32,000 to Ichigo on June 1. What is Ichigo’s basis in D&B at the end of the year?

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Answer #1
Particulars Amount
Beginning basis                68,000
Ordinary loss              (25,000)
Interest 20000
Cash              (32,000)
Ending basis                31,000

Answer is 31,000

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