Question
Chandra was the sole shareholder of Pet Emporium, which was originally formed as an S corporation. When Pet Emporium terminated its S election on August
Chandra was the sole shareholder of Pet Emporium, which was originally formed as an S corporation. When Pet Emporium terminated its S election on August 31, 2021, Chandra had a stock basis and an at-risk amount of $0. Chandra also had a suspended loss from Pet Emporium of $9,500. What amount of the suspended loss is Chandra allowed to deduct, and what is her basis in her Pet Emporium stock, at the end of the post-termination transition period under the following alternative scenarios (assume Pet Emporium files for an extension to file its tax returns)?
Note: Leave no answer blank. Enter zero if applicable.
a. Chandra makes capital contributions of $7,750 on August 30,2022 , and $4,600 on September 14,2022. b. Chandra makes capital contributions of $5,500 on September 1,2022 , and $5,500 on September 30,2022 . c. Chandra makes a capital contribution of $11,000 on August 31, 2022. d. Chandra makes a capital contribution of $11,000 on October 1,2022. a. Chandra makes capital contributions of $7,750 on August 30,2022 , and $4,600 on September 14,2022. b. Chandra makes capital contributions of $5,500 on September 1,2022 , and $5,500 on September 30,2022 . c. Chandra makes a capital contribution of $11,000 on August 31, 2022. d. Chandra makes a capital contribution of $11,000 on October 1,2022
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