Author Question: Shelley owns a 25% interest in a qualifying S corporation. Shelley's basis in the stock was $15,000 ... (Read 69 times)

Mimi · **on:** Sep 13, 2020

Question 1

Minna is a 50% owner of a calendar year S corporation. During the current year, the S corporation had ordinary income of $400,000, short-term capital gain of $150,000 and a charitable contribution of $30,000. What does Minna report for the year from the S corporation?

Question 2

Shelley owns a 25% interest in a qualifying S corporation. Shelley's basis in the stock was $15,000 at the beginning of the year. Shelley made no capital contributions and received no distributions during the year. Shelley loaned the S corporation $20,000 this year. The S corporation incurred a $160,000 ordinary loss this year.
a. What are the amounts of Shelley's deduction and carryover of the unused loss for the year?
b. What is the amount of Shelley's basis in the stock at the end of year one?
c. If the S Corporation earned net income of $200,000 in year two, what is the amount of Shelley's stock basis at the end of year two?

nital · **Reply #1 on:** Sep 13, 2020

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 50% of students answer this correctly