Stephanie Owns a 25% Interest in a Qualifying S Corporation

question 85

Multiple Choice

Stephanie owns a 25% interest in a qualifying S corporation. Stephanie's basis in the stock was $40,000 at the beginning of the year. Stephanie made no capital contributions and received no distributions during the year. Stephanie loaned the S corporation $10,000 this year. The S corporation incurred a $240,000 ordinary loss this year. Stephanie's deduction and carryover of the unused loss are

• A)$30,000 and $30,000.
• B)$40,000 and $20,000.
• C)$50,000 and $10,000.
• D)$60,000 and $0.

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Definitions:

Motivational Need

An internal state that encourages individuals to achieve certain goals or fulfill specific desires.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a startup or new business venture to exploit market opportunities.

Raw Energy

A term often used to describe a powerful, innate, and untamed force or dynamism within individuals or teams.

Intelligence

refers to the ability to learn, understand, and apply knowledge, solve problems, and adapt to new situations.