Question
2020 Corporate Tax Rules - Please show all work Chris is the 100% shareholder of the Denture Corporation, an S corporation, and has a basis
2020 Corporate Tax Rules - Please show all work
Chris is the 100% shareholder of the Denture Corporation, an S corporation, and has a basis of $10,000 in the stock as of January 1, 2019. Chris also made a $15,000 loan to Denture Corporation as of January 1, 2019. During 2019, Denture Corporation had a $5,000 capital gain, made a $2,000 cash distribution to Chris, and incurred a $20,000 ordinary taxable loss.
a) What is Chris stock basis at the end of 2019? _____________________
b) What is his loan basis at the end of 2019? ______________________
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