On January 2,2014,Tim Loans His S Corporation $10,000

question 65

Multiple Choice

On January 2,2014,Tim loans his S corporation $10,000.By the end of 2014,Tim's stock basis is zero,and the basis in his note has been reduced to $8,000.During 2015,the company's operating income is $10,000.The company makes 2015 distributions to Tim of $8,000.Tim reports a(n) :

• A)$2,000 LTCG.
• B)$8,000 LTCG.
• C)Stock basis of $2,000.
• D)Loan basis of $10,000.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data points, indicating the volatility of an investment.