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Problem: Module 7 Textbook Problem 7 Learning Objectives: - 7.6 Adjust the tox bosis in a partnership interest - 7-7 Apply the bosis limitation on

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Problem: Module 7 Textbook Problem 7 Learning Objectives: - 7.6 Adjust the tox bosis in a partnership interest - 7-7 Apply the bosis limitation on the deduction of partnership losses On January 1, Year 1, Ginger, an individual, paid $20,000 for 5 percent of the stock in Root Corp, an $ corporation, In November Year 1, he loaned $9,000 to Root Corp. in return for a promissory note. Root Corp. generated a $650,000 operating loss in Year 1 . Root Corp. generated $413,000 ordinary business income in Year 2 Required: o. How much of Ginger's share of this income is included in his Year 2 taxable income? b. Compute Ginger's basis in his Root Corp. stock and his Root Corp. note at the end of Year 2 c. How would your answers to parts a and b change if Root Corp's ordinary business income was only $225,000 ? Complete this question by entering your answers in the tabs below. a. How much of Ginger's share of this income is included in his Year 2 taxable income? b. Compute Ginger's basis in his Root Corp. stock and his Root Corp. note at the end of Year 2. Problem: Module 7 Textbook Problem 7 Learning Objectives: - 7-6 Adjust the tox bosis in o portnership interest - 7.7 Apply the bosis limitation on the deduction of portnership losses On January 1, Year 1, Ginger, an individual, paid $20,000 for 5 percent of the stock in Root Corp, an S corporation. in November Year 1. he loaned $9,000 to Root Corp. in return for a promissory note. Root Corp. generated a $650,000 operating loss in Year 1 . Root Corp. generated $413,000 ordinary business income in Year 2 Required: o. How much of Ginger's share of this income is included in his Year 2 taxable income? b. Compute Ginger's basis in his Root Corp. stock and his Root Corp. note at the end of Year 2 c. How would your answers to parts a and b change if Root Corp.'s ordinary business income was only $2225,000 ? Complete this question by entering your answers in the tabs below. How would your answers to parts a and b change if Root Cerp.'s ordinary business income was only $225,000

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