Randall Owns 800 Shares in Fabrication, Inc

question 153

Multiple Choice

Randall owns 800 shares in Fabrication, Inc., an S corporation in Moss Hill, Texas.In 2012, his basis in his stock is $30,000, before the adjustment for this year's losses.During 2012, Randall's share of the corporation's ordinary loss is $20,000 and his share of its capital loss is $15,000.How much can Randall deduct due to these losses?

• A)No deduction.
• B)$15,000 ordinary loss; $10,000 capital loss.
• C)$17,143 ordinary loss; $12,857 capital loss.
• D)$20,000 ordinary loss; $15,000 capital loss.

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Definitions:

Local Markets

Geographically specific areas where goods, services, and commodities are bought and sold, taking into account local preferences, cultures, and demand.

Outsourcing Alliance

Refers to a strategic partnership where a company contracts out certain tasks or services to external organizations, focusing on mutual benefits and collaboration.

Co-opetition

A strategy where companies collaborate in certain areas of their business while still competing in other areas.

Mutual Benefit

A situation or arrangement that is advantageous to all parties involved.