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

question 89

Multiple Choice

On January 1, Bobby and Alice own equally all of the stock of an electing S corporation called Prairie Dirt Delight. The dirt company has 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:

All Men Are Created Equal

A principle asserting the inherent equality and entitlement of all individuals to rights and liberties, famously articulated in the U.S. Declaration of Independence.

Common Sense

The basic level of practical knowledge and judgment that we all need to help us live in a reasonable and safe way.

Thomas Paine

An influential political activist and writer whose works, including "Common Sense," contributed to the American Revolution.

New Government

The establishment of a new system of political authority, often following a revolution, reform, or major political change within a country.