Identify Which of the Following Statements Is False

question 31

Multiple Choice

Identify which of the following statements is false.

• A)Randy is a shareholder in an S corporation. His stock basis is $10,000 and his basis in a loan he made to the corporation is $3,000. Randy's share of the corporation's ordinary loss for the current year is $11,000. Ignoring the at-risk and passive activity limitations, Randy can deduct the loss in full.
• B)A shareholder's S corporation stock basis will increase when the shareholder acts as guarantor on a corporate indebtedness.
• C)A shareholder's ratable share of the S corporation's ordinary loss reduces the adjusted basis of his/her S corporation stock. Once the basis of the stock is reduced to zero, any loss-passthrough that remains reduces the basis of S corporation debts that are owed to the shareholder.
• D)Debt basis is restored before stock basis.

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Definitions:

Alzheimer's Disease

Alzheimer's Disease is a progressive neurological disorder marked by memory loss, cognitive decline, and personality changes, leading to severe impairment.

Symptomatic Stages

This term describes the phases through which a disease progresses, marked by specific symptoms and signs at each stage.

Depressive Disorders

A collection of disorders marked by continuous experiences of melancholy, despair, and disinterest or pleasure loss in daily activities, impacting everyday life performance.

Older Adults

Individuals who are in the later stages of life, typically defined as being 65 years of age or older, but this can vary culturally and socially.