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

question 62

Multiple Choice

Suppose at the beginning of 2017,Jamaal's basis in his S corporation stock is $1,000,and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation.In 2017,Jamaal's share of S corporation income is $4,000,and he received a $7,000 distribution from the S corporation.How much income does Jamaal report in 2017 from these transactions?

• A) $0.
• B) $4,000.
• C) $6,000.
• D) $7,000.
• E) None of the choices are correct.

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