Suppose at the Beginning of 2016, Jamaal's Basis in His

question 5

Multiple Choice

Suppose at the beginning of 2016, Jamaal's basis in his S corporation stock is $1,000, and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation. In 2016, Jamaal's share of S corporation income is $4,000, and he received a $7,000 distribution from the S corporation. What is Jamaal's stock and debt basis after these transactions?

• A) $0 stock basis; $8,000 debt basis.
• B) $0 stock basis; $10,000 debt basis.
• C) $5,000 stock basis; $10,000 debt basis.
• D)$5,000 stock basis; $3,000 debt basis.
• E)None of these

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Definitions:

Lateral Excursion

A movement of the jaw side to side, away from the midline, important in the chewing process.

Mandible

The principal and most powerful bone in the face, identified as the lower jawbone.

Multiaxial

Characterized by movement or rotation around multiple axes, often used to describe joints in the human body.

Ball-and-Socket

A Ball-and-Socket joint is a type of synovial joint where a ball-shaped head of one bone fits into a concave socket of another, allowing multidirectional movement and rotation.