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

question 107

Multiple Choice

Suppose at the beginning of 2014, Jamaal's basis in his S corporation stock is $0, he has a $0 debt basis associated with a $10,000 loan he made to the S corporation and a $5,000 suspended loss from the S corporation. In 2014, Jamaal contributed $8,000 to the S corporation, and the S corporation had ordinary income of $4,000. Assume that Jamaal owns 40% of the S corporation. What is Jamaal's stock and debt basis at the end of 2014?

• A) $0 stock basis; $4,600 debt basis.
• B) $0 stock basis; $9,600 debt basis.
• C) $4,600 stock basis; $0 debt basis.
• D) $9,600 stock basis; $0 debt basis.
• E) None of these.

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Definitions:

Prefrontal Cortex

The anterior part of the frontal lobes of the brain, involved in decision making, social behavior, and personality expression.

Amygdala

A region of the brain involved in experiencing emotions, especially fear and aggression, playing a key role in processing emotional responses.

Dissociative Identity Disorder

A condition in which a person experiences two or more separate personality states or identities, each with their own pattern of perceiving and interacting with the world.

Integration of Subpersonalities

A therapeutic goal in psychology aimed at reconciling conflicting parts of an individual's personality into a cohesive self.