Suppose Clampett, Inc

question 61

Multiple Choice

Suppose Clampett, Inc. terminated its S election on August 28, 2018. At the end of the S corporation's short tax year ending on August 28, J. D.'s stock basis and at-risk amounts were both zero (he has never had debt basis) , and he had a suspended loss of $20,000. In 2019, J. D. made additional capital contributions of $5,000 on March 15 and $12,000 on September 20. How much loss may J. D. deduct in 2019?

• A) $0.
• B) $5,000.
• C) $17,000.
• D) $20,000.
• E) None of the choices are correct.

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Definitions:

Forgery

The act of fraudulently making or altering a document with the intent to deceive.

Larceny

The act of taking and carrying away the personal property of another without the right to do so.

Defrauding

The act of obtaining something of value through deceit or trickery.

Bribery

The act of offering, giving, receiving, or soliciting something of value to influence official action or the discharge of a public duty.