Suppose at the Beginning of 2017,Jamaal's Basis in His S

question 111

Multiple Choice

Suppose at the beginning of 2017,Jamaal's basis in his S corporation stock was $27,000 and that Jamaal has directly loaned the S corporation $10,000.During 2017,the S corporation reported an $80,000 ordinary business loss and no separately stated items.How much of the ordinary loss is deductible by Jamaal if he owns 50% of the S corporation?

• A) $10,000.
• B) $27,000.
• C) $37,000.
• D) $40,000.
• E) None of the choices are correct.

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Definitions:

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