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:

Sensorimotor Intelligence

Jean Piaget's theory stage where babies from birth to about two years learn through interacting with the world using their senses and motor actions.

Infant Amnesia

The observed phenomenon that most adults cannot recall personal memories from the early years of their life, typically before the age of 3 or 4.

Sensorimotor Development

The stage in early childhood development in which an infant's understanding of the world is based on their sensory experiences and motor actions.

Motor Skills

Abilities required to perform movements and tasks, involving the coordination of muscles and the nervous system, categorized into fine (small movements) and gross (larger movements) motor skills.