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Suppose that at the beginning of 2 0 2 2 Jamaal's basis in his S corporation stock is $ 1 , 5 0 0 and

Suppose that at the beginning of 2022 Jamaal's basis in his S corporation stock is $1,500 and he has a $10,500 debt basis associated with a $10,500 loan he made to the S corporation. In 2022, Jamaal's share of S corporation income is $4,500, and he received a $7,500 distribution from the S corporation. What is Jamaal's stock and debt basis after these transactions?
Multiple Choice
$0 stock basis; $9,000 debt basis
$0 stock basis; $10,500 debt basis
$6,000 stock basis; $10,500 debt basis
$6,000 stock basis; $3,000 debt basis
None of the choices are correct.

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