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Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $45,000 loss this...

Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $45,000 loss this year (year 1). Assume her stock basis is $10,000 at the beginning of the year and that at the beginning of year 1 Jessica loaned Bikes-R-Us $3,000. In year 2, Bikes-R-Us reported ordinary income of $12,000. (Leave no answer blank. Enter zero if applicable.) Required: What amount is Jessica allowed to deduct in year 1 and year 2? What are her stock and debt bases in the corporation at the end of year 1? What are her stock and debt bases in the corporation at the end of year 2?

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Solution Given data, Secs basi S Corpoation erperien ce eara) ncoma $ 12000 Year7eica lned Corpaation allcated to essica - ysgessicas sta loi oud debt baj of year abbed to cover ber share of the Coposutions ox. Tessicae Stock bayis at the end of ye

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