A Calendar Year C Corporation Has a $41,000 NOL in 2010

question 140

Multiple Choice

A calendar year C corporation has a $41,000 NOL in 2010, but it elects S status for 2011 and generates an NOL of $30,000 in 2011. At all times during 2011, the stock of the corporation was owned by the same 10 shareholders, each of whom owned 10% of the stock. Kris, one of the 10 shareholders, has an S stock basis of $2,300 at the beginning of 2011. How much of the loss, if any, is deductible by Kris in 2011?

• A) None.
• B) $2,300.
• C) $3,000.
• D) $7,100.

Explain how technology, like EDI and extranets, enhances SCM productivity and security.

Understand the impact of supply chain strategies on product distribution and assembly activities.

Appreciate the role of innovation and responsiveness in the success of supply chain models, exemplified by companies like Zara and Amazon.

Understand business strategies related to supply chain and inventory management (e.g., vertical integration, JIT).

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Definitions:

Primary Market

The financial market where new securities are issued and sold for the first time, typically through public offerings or private placements.

Controller

A senior financial officer responsible for managing the accounting operations of a business, including financial reporting and budgeting.

Tax Management

The process of analyzing financial situations or decisions from a tax perspective with the aim to minimize tax liability.

Financial Accounting

Financial accounting refers to the process of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time. These transactions are summarized in the preparation of financial statements, including the balance sheet, income statement, and cash flow statement, that record the company's operating performance over a specific period.