1. Magnum, a 50-percent shareholder in Robin Masters Inc. (RM), is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume RM has a $50,000 tax loss for the year, Magnum's tax basis in his RM stock was $100,000 at the beginning of the year, and he received $150,000 ordinary income from other sources during the year. Assuming Magnum's marginal tax rate is 24 percent, how much more tax will Magnum pay currently if RM is a C corporation compared to the tax he would pay if it were an S corporation?
   1. $0
   2. $6,000
   3. $12,000
   4. $18,000