On January 1, Bobby and Alice Own Equally All of the Stock

question 13

Multiple Choice

On January 1, Bobby and Alice own equally all of the stock of an electing S corporation called Prairie Dirt Delight. The entity incurs a $60,000 loss for a non-leap year. On the 200th day of the year (not a leap year) , Bobby sells his one-half of the stock to his son, Saul. How much of the $60,000 loss, if any, is allocated to Bobby?

• A) $0
• B) $13,562
• C) $16,438
• D) $32,877

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Definitions:

Fewer Banks

Refers to a situation in the financial sector where the number of banking institutions is reduced, which can affect the competition, availability of credit, and financial stability of an economy.

Deposits Concentrated

Deposits concentrated indicates a banking scenario where a large proportion of deposits is held by a small number of account holders.

Thrift Institutions

Savings banks and credit unions; depository institutions that historically lent money to households.

Money Market Mutual Funds

Investment funds that invest in short-term, high-quality debt securities and aim to offer returns with minimal risk, providing investors with liquidity and a modest income.