A Calendar Year C Corporation Reports a $41,000 NOL in 2011

question 134

Multiple Choice

A calendar year C corporation reports a $41,000 NOL in 2011, but it elects S status for 2012 and generates an NOL of $30,000 in that year. At all times during 2012, 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 2012. How much of the 2012 loss, if any, is deductible by Kris?

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

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Definitions:

Labor Reports

Documents or publications detailing employment statistics, workforce conditions, and other data relevant to labor markets, often released by government agencies or other organizations.

Stock Market Reports

Financial analyses and summaries that provide information on the performance of stock markets and individual stocks.

Consumers

Individuals or groups that purchase goods or services for personal use and not for manufacture or resale.

Commercial Ventures

Business projects or enterprises initiated with the intent to make a profit, often by meeting consumer needs or offering innovative products.