Identify Which of the Following Statements Is False

question 31

Multiple Choice

Identify which of the following statements is false.

• A)Randy is a shareholder in an S corporation. His stock basis is $10,000 and his basis in a loan he made to the corporation is $3,000. Randy's share of the corporation's ordinary loss for the current year is $11,000. Ignoring the at-risk and passive activity limitations, Randy can deduct the loss in full.
• B)A shareholder's S corporation stock basis will increase when the shareholder acts as guarantor on a corporate indebtedness.
• C)A shareholder's ratable share of the S corporation's ordinary loss reduces the adjusted basis of his/her S corporation stock. Once the basis of the stock is reduced to zero, any loss-passthrough that remains reduces the basis of S corporation debts that are owed to the shareholder.
• D)Debt basis is restored before stock basis.

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Definitions:

Insulin Syringes

Specialized syringes designed for injecting insulin, a hormone needed for the treatment of diabetes, with unique features for accurate dosing.

Sharps Container

A hard plastic container that is used to safely dispose of needles, scalpels, and other sharp medical instruments to prevent injury and infection.

Safety Cap

A protective cover designed to prevent accidental opening, often used on medication bottles.

Health Hazards

Physical, chemical, biological, or environmental factors that can cause harm or adverse health effects to individuals.