Funky Chicken Is a Calendar Year S Corporation with the Following

question 20

Multiple Choice

Funky Chicken is a calendar year S corporation with the following current year information: On January 1 June Cross bought 60% of Funky Chicken for $45,000. She then loaned the company $20,000. How much of the operating loss may Cross deduct on her Form 1040?

• A) $57,000
• B) $80,000
• C) $65,000
• D) $75,000

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Definitions:

Rehiring Former Employees

The practice of employing individuals who previously worked for the organization and have left but are now returning, often benefiting from their prior experience and familiarity with the company.

Conflict

a serious disagreement or argument, typically a protracted one between individuals, groups, or nations.

Private Employment Agencies

Agencies that assist individuals in finding employment and help companies to fill vacancies.

Unskilled Job Applicants

Individuals seeking employment who lack specific training or qualifications for the positions they apply for.