22. At the beginning of the tax year, Tim had a $2,000 stock basis in the S corporation, World, Inc. Tim owns 25% of the outstanding World, Inc. stock. At the end of the tax year, World, Inc. reported on its Schedule K, a $16,000 ordinary loss, $4,000 of interest income, and $2,000 in nondeductible expense. Tim also has $10,000 in flow-through reportable income from other S corporations. How much of the World, Inc. ordinary loss can Tim deduct on his personal return? 23. Olympic Corporation distributed real estate with a FMV of $500,000 to its sole shareholder, Joshua. Olympics basis in the real estate is $400,000. What is the tax effect of the distribution to Olympic and what is Joshua's basis in the real estate? 24. You own 50% of Blaster, Inc., an S Corporation, filing returns on a calendar year basis. For the current tax year, the corporation has an operating loss of $13,000 and separately stated tax-exempt income of $10,000. Your basis on January 1 is $2,000. What is your basis on December 31? $0 $2,500 $3,000 $4,000 $0 gain/loss to Olympic; $400,000 basis to Joshua $100,000 gain to Olympic; $400,000 basis to Joshua $0 gain/loss to Olympic; $500,000 basis to Joshua $100,000 gain to Olympic; $500,000 basis to Joshua $0 $(1,000) $500 None of the above

22. At the beginning of the tax year, Tim had a $2,000 stock basis in the S corporation, World, Inc. Tim owns 25% of the outstanding World, Inc. stock. At the end of the tax year, World, Inc. reported on its Schedule K, a $16,000 ordinary loss, $4,000 of interest income, and $2,000 in nondeductible expense. Tim also has $10,000 in flow-through reportable income from other S corporations. How much of the World, Inc. ordinary loss can Tim deduct on his personal return? - $0 - $2,500 - $3,000 - $4,000 23. Olympic Corporation distributed real estate with a FMV of $500,000 to its sole shareholder, Joshua. Olympics basis in the real estate is $400,000. What is the tax effect of the distribution to Olympic and what is Joshua's basis in the real estate? - $0 gain/loss to Olympic; $400,000 basis to Joshua - $100,000 gain to Olympic; $400,000 basis to Joshua - $0 gain/loss to Olympic; $500,000 basis to Joshua - $100,000 gain to Olympic; $500,000 basis to Joshua 24. You own 50% of Blaster, Inc., an S Corporation, filing returns on a calendar year basis. For the current tax year, the corporation has an operating loss of $13,000 and separately stated tax-exempt income of $10,000. Your basis on January 1 is $2,000. What is your basis on December 31 ? - $0 - $(1,000) - $500 - None of the above