Question
Maddie is a shareholder in Doggie DayCare, Inc. an S Corporation. Her initial investment was $1,000. Since inception, Doggie DayCare has passed thru income of
Maddie is a shareholder in Doggie DayCare, Inc. an S Corporation. Her initial investment was $1,000.
Since inception, Doggie DayCare has "passed thru" income of $65,000 to Maddie, made distributions of$50,000, and had ordinary losses from the sale of kennels of $5,000. To purchase new equipment,Maddie guaranteed a loan of $30K from PupGo Bank to Doggie DayCare, Inc. What is her basis?
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Management Accounting
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
7th Edition
978-1760421144, 1760421146
