Suppose Clampett,Inc

question 92

Multiple Choice

Suppose Clampett,Inc.terminated its S election on August 28,2017.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 2018,J.D.made additional capital contributions of $5,000 on March 15 and $12,000 on September 5.How much loss may J.D.deduct in 2018?

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