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George, a sole shareholder, has a $17,000 stock basis and $16,000 basis in a loan that he made to George and Sons a calendar year
George, a sole shareholder, has a $17,000 stock basis and $16,000 basis in a loan that he made to George and Sons a calendar year S Corporation with no AEP. At the beginning of the tax year, the corporations AAA and OAA balances are $0. Subchapter S ordinary income for the year is $18,200 during which George and Sons, received $8,000 of tax-exempt interest income. Cash of $17,300 is distributed to George on November 15. Please compute Georges Stock basis, loan basis and capital gain/loss.
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