A Calendar Year C Corporation Reports a $41,000 NOL in 2013

question 75

Multiple Choice

A calendar year C corporation reports a $41,000 NOL in 2013, but it elects S status for 2014 and generates an NOL of $30,000 in that year. At all times during 2014, 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, holds an S stock basis of $2,300 at the beginning of 2014. How much of the 2014 loss, if any, is deductible by Kris?

• A) $0
• B) $2,300
• C) $3,000
• D) $7,100

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Definitions:

Intergenerational Mobility

Is social mobility that occurs between generations.

Intragenerational Mobility

Is social mobility that occurs within a single generation.

Horizontal Mobility

The movement of individuals or groups across similar social and economic positions, without a change in their status.

Human Capital Theory

posits that individuals and societies benefit from investments in people's education and skills, equating such investment to building capital.