Stephanie Owns a 25% Interest in a Qualifying S Corporation

question 115

Multiple Choice

Stephanie owns a 25% interest in a qualifying S corporation.Stephanie's basis in the stock was $40,000 at the beginning of the year.Stephanie made no capital contributions and received no distributions during the year.Stephanie loaned the S corporation $10,000 this year.The S corporation incurred a $240,000 ordinary loss this year.Stephanie's deduction and carryover of the unused loss are

• A) \[\begin{array} { | l | l | }
• \hline & \text { Carryover } \\
• \text { Deductible Loss } & \text { Loss } \\
• \hline \$ 30,000 & \$ 30,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline & \text { Carryover } \\
• \text { Deductible Loss } & \text { Loss } \\
• \hline \$ 40,000 & \$ 20,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline & \text { Carryover } \\
• \text { Deductible Loss } & \text { Loss } \\
• \hline \$ 50,000 & \$ 10,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline & \text { Carryover } \\
• \text { Deductible Loss } & \text { Loss } \\
• \hline \$ 60,000 & \$ 0 \\
• \hline
• \end{array}\]

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The study and analysis of how different ethnic groups interact, coexist, and sometimes conflict within societies.

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