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

question 72

Multiple Choice

Suppose at the beginning of 2016, Jamaal's basis in his S corporation stock is $0, he has a $0 debt basis associated with a $10,000 loan he made to the S corporation and a $5,000 suspended loss from the S corporation. In 2016, Jamaal contributed $8,000 to the S corporation, and the S corporation had ordinary income of $4,000. Assume that Jamaal owns 40% of the S corporation. How much net income or loss does Jamaal report this year from the S corporation?

• A) $4,000 income.
• B) $1,600 income.
• C) $1,000 loss.
• D)$3,400 loss.
• E)None of these

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Definitions:

Depolarize

To reduce the polarization of a neuron, making the inside of the cell less negative compared to the outside, and promoting the generation of an action potential.

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The use of electrical impulses to stimulate nerves or muscle fibers to improve function, relieve pain, or promote healing.

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A medical specialty concerned with the prevention, diagnosis, surgical treatment, and rehabilitation of disorders which affect any portion of the nervous system.

Stereotaxic Apparatus

A surgical tool that allows for the precise positioning of instruments within the brain of an animal under study.