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can you put the answers in the boxes for Abigail, Bobby, and Claudia Abigail, Bobby, and Claudia are equal owners in Lafter, an corporation that
can you put the answers in the boxes for Abigail, Bobby, and Claudia
Abigail, Bobby, and Claudia are equal owners in Lafter, an corporation that was a C corporation several years ago. While Abigail and Bobby actively participate in running the company, Claudia has a separate day job and is a passive owner. Consider the following information for 2019: As of January 1, 2019, Abigail, Bobby, and Claudia each have a basis in Lafter stock of $15,000 and a debt basis of $o. On January 1, the stock basis is also the at-risk amount for each shareholder Bobby and Claudia also are passive owners in Aggressive LLC, which allocated business income of $14,000 to each of them in 2019. Neither has any other source of passive income (besides Lafter, for Claudia). On March 31, 2019, Abigail lends $5,000 of her own money to Lafter. Anticipating the need for basis to deduct a loss, on April 4, 2019. Bobby takes out a $10,000 loan to make a $10,000 contribution to Lafter. Bobby uses his automobile ($12,000 fair market value) as the sole collateral for his loan (nonrecourse). Lafter has an accumulated adjustments account balance of $45,000 as of January 1, 2019. Lafter has C corporation earnings and profits of $15,000 as of January 1, 2019. During 2019. Lafter reports a business loss of $75,000, computed as follows: . . Sales revenue Cost of goods sold Salary to Abigail Salary to Bobby Business (loss) $ 90,000 (85,000) (48,000) (40,000) 5 (75,000) Lafter also reported $12,000 of tax-exempt interest income. During 2020. Lafter made several changes to its business approach and reported $18,000 of business income, computed as follows: . Sales revenue Cost of goods sold Salary to Abigail Salary to Bobby Marketing expense Business income $ 288,000 (90,000) (45,000) (45,000 (10,000) $ 18,000 Lafter also reported a long-term capital gain of $24,000 in 2020. Lafter made a cash distribution on July 1, 2020, of $20,000 to each shareholder. (For all requirements, do not round your intermediate calculations. Round your final answer to the nearest whole dollar amount Leave no answer blank. Enter zero if applicable.) Required: 2-1. What amount of Lafter's 2019 business loss of $75,000 are Abigail, Bobby, and Claudia allowed to deduct on their individual tax returns? .-2. What are each owner's stock basis and debt basis (if applicable) and each owner's at-risk amount with respect to the investment Step by Step Solution
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