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PLZ HELP! Andy, a 100% owner of Stork Corporation, an S corporation, has a stock basis of zero at the beginning of 2022. In 2019,
PLZ HELP!
Andy, a 100% owner of Stork Corporation, an S corporation, has a stock basis of zero at the beginning of 2022. In 2019, Andy lent Stork $10,000 evidenced by a corporate note. Andy's basis in the note has been reduced to $8,000. At the end of 2022 , Andy was allocated $10,000 of ordinary income and received a $11,000 cash distribution. Determine the tax effects of the distribution. Determine Andy's stock basis and debt basis after consideration of the income allocation and cash distribution Step by Step Solution
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