Laurie Is a 70% Shareholder in Martin Ltd

question 48

Multiple Choice

Laurie is a 70% shareholder in Martin Ltd. ,a calendar year S corporation.As of January 1,2016,Laurie's basis in her stock investment was $400,000.During 2016,she made an additional capital contribution to Martin of $90,000 and also loaned the corporation $80,000.During 2016,Martin Ltd.had an operating loss of $900,000.One of the results of these transactions as to 2016 is that:

• A)Laurie can recognize a loss of $400,000.
• B)Laurie can recognize a loss of $490,000.
• C)Laurie can recognize a loss of $630,000.
• D)As of January 1,2017,Laurie's basis in her stock is a negative $60,000.
• E)None of the above.

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Definitions:

Parent-Child Interactions

The dynamic exchanges between a parent and child, including communication, behavior, and emotional responses, which influence the child's development.

Relational Aggression

A form of aggression aimed at damaging or manipulating relationships, including social exclusion and spreading rumors.

Instrumental Aggression

Aggressive behavior aimed at achieving a specific goal or obtaining an object, not merely to cause harm.

Sociometric Status

A measure of an individual's acceptance and popularity within a peer group, based on social networks and interactions.