Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Jenny has been an owner of a S corporation for 5 years. Originally she contributed $50,000 dollars cash to acquire her interest in the company.
Jenny has been an owner of a S corporation for 5 years. Originally she contributed $50,000 dollars cash to acquire her interest in the company. She has also made direct loans totaling $13,000 to the S corporation over the years. Unfortunately, the S corporation has not been profitable and her stock and loan basis were $0 at the end of last year. Assume there are no suspended losses. This year Jenny had profit of $15,000 allocated to her. What is Jenny's ending stock and loan basis? $15,000 stock basis and $loan $0 stock basis and $ 13,000 loan basis $2,000 stock basis and $ 13,000 loan basis 7.500 stock basis and $7 500 basis
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started