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

question 26

Multiple Choice

Suppose that at the beginning of 2020 Jamaal's basis in his S corporation stock was $28,000 and Jamaal has directly loaned the S corporation $9,990. During 2020, the S corporation reported an $80,100 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) $9,990
• B) $28,000
• C) $37,990
• D) $40,050
• E) None of the choices are correct.

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Definitions:

Sacrifice Freedom

The act of giving up personal liberties and choices for the benefit of a larger group, cause, or principle.

Hobbes's Ideas

The political philosophies of Thomas Hobbes, which emphasize the necessity of a strong central authority to avoid the chaos and conflict inherent in the state of nature.

Benjamin Franklin

A Founding Father of the United States known for his contributions as a statesman, author, publisher, scientist, inventor, and diplomat.

Eugenics Movement

A social and scientific movement that aimed at improving the genetic quality of the human population through selective breeding and sterilization, based on theories of heredity.