On January 1 of This Year (Assume Not a Leap

question 117

Multiple Choice

On January 1 of this year (assume not a leap year) , Anne bought 50% of a calendar year S corporation. Anne purchased the remaining 50% on July 1. Anne's adjusted basis in the stock is $277,000 before any basis adjustments are taken into account. For this year, the corporation had a net operating loss of $365,000. What is the amount of the corporation's loss that Anne can deduct on her current individual income tax return?

• A)$0
• B)$274,500
• C)$273,500
• D)$365,000

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Definitions:

Financial Ratio

A quantitative measure that compares two financial variables from a company's financial statements, often used to assess its financial health.

Marketers

Professionals or organizations involved in the activities and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Activity Ratio

A financial metric used to measure a company's ability to convert different accounts within its balance sheets into cash or sales.

Financial Ratio

A quantitative measure derived from a company's financial statements used to gauge its performance, financial health, and conditions.