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Problem 12-38 (LO. 7, 8, 9) At the beginning of the tax year, Lizzie holds a $10,000 stock basis as the sole shareholder of Spike,
Problem 12-38 (LO. 7, 8, 9) At the beginning of the tax year, Lizzie holds a $10,000 stock basis as the sole shareholder of Spike, Inc., an S corporation. During the year, Spike reports the following: Net taxable income from sales $25,000 Net short-term capital loss Cash distribution to Lizzie, 12/31 (18,000) 40,000 If an amount is zero, enter "O". a. Determine Lizzie's stock basis at the end of the year. $ -23,000 X. b. Of Lizzie's $40,000 cash distribution, is tax-free and $ is a capital gain c. $ 0 X of the short-term capital loss is suspended this year
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