68. An S corporation has an accumulated adjustments account balance of $50,000 at the beginning of the year and accumulated earnings and profits of $20,000. The corporation earns $40,000 for the year. The corporation makes a distribution of $120,000. What would the sole shareholder’s stock basis have to be at the beginning of the year to avoid any capital gain reporting?70. Some stock in a calendar-year S corporation is sold to a nonresident alien on February 13, 2013. On what date is the corporation’s status as an S corporation terminated?72. How is a taxpayer able to remove income previously taxed from an S corporation that has terminated its status without incurring any additional tax?74. A shareholder purchased 20 percent of the stock of an S corporation three-quarters of the way through the year for $10,000. The S corporation incurred a net operating loss of $320,000. What is the amount the shareholder may deduct on his personal income tax return, assuming the at-risk and passive activity rules do not apply?a. A loss of $64,000b. A loss of $16,000c. A loss of $10,000d. A loss of $2,000e. None of the above76. John owns stock in an S corporation. John’s share of the corporation’s loss for the year is $5,000. His adjusted basis in the corporation stock is $1,000. In addition, John has a loan outstanding to the corporation in the amount of $2,000. What amount, if any, is John entitled to deduct with respect to the loss, assuming he meets the at-risk and passive activity requirements?a. $5,000b. $3,000c. $2,000d. $1,000e. None of the above