Anna Owns 20% of Cross Co

question 62

Multiple Choice

Anna owns 20% of Cross Co., an electing S corporation. Anna's adjusted basis in the stock is $32,000 at the beginning of the current year. During the current year, Cross pays a $50,000 cash dividend to its shareholders. Cross Co. reports a $200,000 operating loss for the current year. Which of the following statements is/are correct?
I.If Anna is a material participant in Chris Co., she can deduct a $40,000 loss.
II.Anna's maximum loss deduction is limited to $22,000.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Suicide

Is the act of intentionally causing one's own death, often resulting from despair or mental health disorders.

Nonsuicidal Self-injury

Behaviors where individuals deliberately harm their bodies without the intent to die, often as a way to cope with emotional distress.

Adderall

A prescription medication commonly used to treat attention deficit hyperactivity disorder (ADHD) and certain sleep disorders, comprising amphetamine salts.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by patterns of inattention, impulsivity, and, in some cases, hyperactivity.