#21

Suppose that at the beginning of 2022SH 's basis in his S corporation stock is $1,900 and he has a $10,900 debt basis associated with a $10,900 loan he made to the S corporation. In 2022, SH's share of S corporation income is $4,900, and he received a $7,900 distribution from the S corporation. Determine SH's stock and debt basis after these transactions. $0 stock basis; $10,900 debt basis $6,800 stock basis; $3,000 debt basis None of these answers is correct $0 stock basis; $9,800 debt basis $6,800 stock basis; $10,900 debt basis