Suppose at the Beginning of 2014, Jamaal's Basis in His

question 86

Multiple Choice

Suppose at the beginning of 2014, Jamaal's basis in his S corporation stock was $27,000 and that Jamaal has loaned the S corporation $10,000. During 2014, 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 these.

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Definitions:

Price Elasticity of Demand

A measure that calculates the change in the quantity demanded of a good in response to a change in its price.

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The total amount of a good or service that consumers are willing and able to purchase at a given price, over a specific period.

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A series of advertisement messages that share a single idea and theme intended to market a product or service.