Cactus corporation, an s corporation, had accumulated earnings and profits of $100,000 at the beginning of 2017. tex and shirley each own 50% of the stock and have a basis in their stock of $50,000 on january 1, 2017. cactus does not make any distributions during 2017, but had $200,000 of ordinary income. in 2018, ordinary income was $100,000 and distributions were $100,000. what is tex's basis at january 1, 2019?

a) $100,000
b) $150,000
c) $200,000
d) $250,000

On june 1, 2017, blossom company was started with an initial investment in the company of $22,360 cash. here are the assets, liabilities, and common stock of the company at june 30, 2017, and the revenues and expenses for the month of june, its first month of operations: cash $4,960 notes payable $12,720 accounts receivable 4,340 accounts payable 840 service revenue 7,860 supplies expense 1,100 supplies 2,300 maintenance and repairs expense 700 advertising expense 400 utilities expense 200 equipment 26,360 salaries and wages expense 1,760 common stock 22,360 in june, the company issued no additional stock but paid dividends of $1,660. prepare an income statement for the month of june.