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

question 65

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.After any loss deductions this year,what is Jamaal's stock and debt basis at the end of the year if Jamaal is a 50% shareholder of the S corporation?

• A) $27,000 stock basis; 10,000 debt basis.
• B) $0 stock basis; $10,000 debt basis.
• C) $67,000 stock basis; $10,000 debt basis.
• D) -$13,000 stock basis; $10,000 debt basis.
• E) None of the choices are correct.

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Definitions:

High Self-Esteem

A positive view of oneself and confidence in one's own worth and abilities.

Identity

The way in which individuals perceive themselves and are recognized or distinguished by others, often shaped by personal choices and social influences.

Inflexible

Lack of flexibility or adaptability in thinking, planning, or interaction with the environment.

Self-Esteem

An individual's perception of their own worth or value.