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Durham Inc a calendar year S Corp has two equal shareholders Cat and Dan. As of the beginning of the year Cats stock basis is
Durham Inc a calendar year S Corp has two equal shareholders Cat and Dan. As of the beginning of the year Cats stock basis is 0 and her basis in a loan with Durham equals 4000. The original loan balance equals 10000. Dan has a stock basis of 2000. During the current year, Durham recognizes total ordinary income of 14000 and distributes 2000 to each shareholder. Calculate Cats stock basis and loan basis at the end of the year and determine her taxable gain if any
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