12 During the year of 2021, Osbourne Corporation, an S corporation incurs an $90,000 Net Operating Loss. Denise, the sole (one hundred percent (100%)) shareholder of Osbourne Corporation, has a $60,000 basis in her stock at the beginning of the year of 2021 and there is a $75,000 balance in the Accumulated Adjustments Account (AAA) of Osbourne Corporation at the beginning of the year of 2021. As a result, which of the following statements is correct? At the end of the year of 2021, there is a zero ($-0-) basis in both Cheryll's basis in her stock and the Accumulated Adjustments Account (AAA) of Osbourne Corporation. Cheryll may deduct a $75,000 Loss on her personal Federal Income Tax Return (Form 1040) for the year of 2021 for the activities of Osbourne Corporation. Cheryll may deduct a $90,000 Loss on her personal Federal Income Tax Return (Form 1040) for the year of 2021 for the activities of Osbourne Corporation. At the end of the year of 2021, Cheryll has a zero ($-0-) basis in her stock and there is a negative $15,000 balance in the Accumulated Adjustments Account (AAA) of Osbourne Corporation. k Save and Submit to save and submit. Click Save All Answers to save all answers. 3 p