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:

Groundlings

Historically, audience members who stood in the pit of the Elizabethan theatres, most notably in Shakespeare's time.

Pronoun

A word that takes the place of a noun, such as 'he,' 'they,' or 'it,' used to avoid repetition.

Globe Theatre

A historic theater in London associated with William Shakespeare, known for its open-air, circular design.

Pronoun

A word that takes the place of a noun, used to avoid repetition or to refer to participants in the discourse.