A Calendar Year C Corporation Reports a $41,000 NOL in 2013

question 75

Multiple Choice

A calendar year C corporation reports a $41,000 NOL in 2013, but it elects S status for 2014 and generates an NOL of $30,000 in that year. At all times during 2014, the stock of the corporation was owned by the same 10 shareholders, each of whom owned 10% of the stock. Kris, one of the 10 shareholders, holds an S stock basis of $2,300 at the beginning of 2014. How much of the 2014 loss, if any, is deductible by Kris?

• A) $0
• B) $2,300
• C) $3,000
• D) $7,100

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Definitions:

Cross-cultural Differences

The variations in customs, lifestyles, and values between cultures that can influence behavior and social practices.

Relative Age Effect

The influence that the month of birth has on various aspects of an individual's life, such as academic achievements or sports performance.

Certain Foods

Specific dietary items that are singled out or identified for any number of reasons, such as health benefits or dietary restrictions.

Human Nature

The general psychological characteristics, feelings, and behavioral traits of humankind, regarded as shared by all humans.