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On January 2, 2013, Tim Loans His S Corporation $10,000

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On January 2, 2013, Tim loans his S corporation $10,000. By the end of 2013, Tim's stock basis is zero, and the basis in his note has been reduced to $8,000. During 2014, the company's operating income is $10,000. The company makes 2014 distributions to Tim of $8,000. Tim reports a(n) :


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