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2. Turner is a 100% shareholder of Luke Corp. (an S corporation). At the beginning of 2019, Turner's basis in his Luke Corp. stock was
2. Turner is a 100% shareholder of Luke Corp. (an S corporation). At the beginning of 2019, Turner's basis in his Luke Corp. stock was $10,000. During 2019, Turner loaned $25,000 to Luke Corp. and Luke Corp. reported a $26,000 ordinary business loss and no separately stated items. In 2020, Luke Corp. reported $18,000 of ordinary business income. a. How much of the $26,000 ordinary loss allocated to Turner clears the tax basis hurdle for deductibility in 2019? Explain and show calculations. b. What is Turner's stock and debt basis at the end of 2019? Show calculations. C. What is Turner's stock and debt basis at the end of 2020? Show calculations. ots
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