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

question 9

Multiple Choice

Suppose that at the beginning of 2020 Jamaal's basis in his S corporation stock is $1,000 and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation. In 2020, Jamaal's share of S corporation income is $4,000, and he received a $7,000 distribution from the S corporation. How muchtotal income does Jamaal report in 2020 from these transactions?

• A)$0
• B)$4,000
• C)$6,000
• D)$7,000
• E)None of the choices are correct.

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Definitions:

Parasympathetic Activities

Functions of the parasympathetic nervous system that work to conserve energy and bring the body to a state of rest, such as decreasing heart rate and increasing digestion.

Norepinephrine

A neurotransmitter and hormone associated with the body's stress response and regulation of blood pressure, attention, and alertness.

Hypervigilance

An amplified sensitivity to senses, along with an exaggerated scope of behaviors focused on threat detection.

Chronic Arousal

A continuous state of being physiologically alert and responsive to stimuli.