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Suppose that at the beginning of 2022 Jamaal's basis in his S corporation stock is $1,000 and he has a $10,000 debt basis associated with
Suppose that at the beginning of 2022 Jamaal's basis in his S corporation stock is $1,000 and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation. In 2022, Jamaal's share of S corporation income is $4,000, and he received a $7,000 distribution from the S corporation. What is Jamaal's stock and debt basis after these transactions?
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