Suppose That at the Beginning of 2020 Jamaal's Basis in His

question 46

Multiple Choice

Suppose that at the beginning of 2020 Jamaal's basis in his S corporation stock was $32,000 and Jamaal has directly loaned the S corporation $9,910. During 2020, the S corporation reported an $84,500 ordinary business loss and no separately stated items. How much of the ordinary loss is deductible by Jamaal if he owns 50percent of the S corporation?

• A)$9,910
• B)$32,000
• C)$41,910
• D)$42,250
• E)None of the choices are correct.

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Definitions:

Budget Line

A visual chart representing all the various combinations of two goods purchasable with a determined budget, with the prices of those goods fixed.

Price Falls

A reduction in the cost of goods or services in an market, often influenced by supply and demand dynamics.

Consumption

The usage of goods and services by households, contributing to the aggregate demand in an economy.

Determinants

Factors that can influence the outcome of a certain situation or the value of a specific variable in economics.