Suppose Clampett, Inc

question 99

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 5. 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.

---

Definitions:

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, crucial for maintaining bodily functions.

Mm Hg

Millimeters of mercury; a unit of pressure used in various applications, including the measurement of blood pressure.

Foramen Ovale

A fetal structure allowing blood flow between the right and left atria of the heart, which normally closes after birth.

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body and pumps it to the right ventricle.