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

---

Definitions:

Western Countries

Refers to nations primarily located in the Western Hemisphere, often associated with economies that are relatively developed and democratic political systems.

Fundamental Attribution Error

The tendency, in explaining other people’s behavior, to overestimate personality factors and underestimate the influence of the situation.

Dispositional Influences

Refers to personality traits that influence behavior and actions in individuals.

Situational Influences

External factors that can affect an individual's behavior and decisions in a given context, such as social norms and environmental cues.