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Maria is a sole shareholder in Austin Corporation, an S corporation. At the beginning of last year, her basis in her Austin stock was $300,000.
Maria is a sole shareholder in Austin Corporation, an S corporation. At the beginning of last year, her basis in her Austin stock was $300,000. Austin also had debt of $150,000 it owed to unrelated parties. During last year she loaned Austin $250,000, and it generated a loss of $400,000. What was her basis in the stock and the loan at the end of last year?
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