Orange, Inc., a calendar year corporation in Clemson, South Carolina, elects S corporation status for 2017. The

Question:

Orange, Inc., a calendar year in Clemson, South Carolina, elects S status for 2017. The company generated a $74,000 NOL in 2016 and another NOL of $43,000 in 2017.
Orange stock always is owned by the same four shareholders, each owning 25% of the stock. Pete, one of the shareholders, holds a $6,020 basis in this Orange stock at the beginning of 2017. Identify the Federal income tax issues that Pete faces?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...