year 1 | year 2 | ||
---|---|---|---|
a | Deducible Amount | 0 | 0 |
b-c | stock basis | -16000 | 4200 |
Debt Basis | 3300 | 3300 |
Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $48,000 loss this...
Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $49,800 loss this year (year 1). Assume her stock basis is $11,920 at the beginning of the year and that at the beginning of year 1 Jessica loaned Bikes-R-Us $3,480. In year 2, Bikes-R-Us reported ordinary income of $12,960. 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...
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...
Jessica is a one-third owner in Bikes-R-Us, an Scorporation that experienced a $47,400 loss this year (year 1). Assume her stock basis is $10,960 at the beginning of the year and that at the beginning of year 1 Jessica loaned Bikes-R-Us $3,240. In year 2, Bikes-R-Us reported ordinary income of $12,480. (Leave no answer blank. Enter zero if applicable.) Required: a. What amount is Jessica allowed to deduct in year 1 and year 2? b. What are her stock and...
essica 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...
Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $47,100 loss this year (year 1). Assume her stock basis is $10,840 at the beginning of the year and that at the beginning of year 1 Jessica loaned Bikes-R-Us $3,210. In year 2, Bikes-R-Us reported ordinary income of $12,420. (Leave no answer blank. Enter zero if applicable.) Required: What are her stock and debt bases in the corporation at the end of year 2?
ackson is the sole owner of JJJ Corp. (an S corporation). At the beginning of 2019, Jackson's basis in his JJJ stock was $8,000. For 2019, JJJ reported a ($30,000) ordinary business loss (not a passive loss) and $4,000 of long-term capital gains. Assuming Jackson's tax basis and his at-risk amount are the same, what is Jackson's stock basis at the end of the year and how much of the ordinary business loss is he allowed to deduct in 2019?
The following formation is available for as R Us Corporation for the year ended December 31, 2019 1 Balance of retained earnings, January 1, 2019 w. 51,375 000 2 Cash dividends declared and paid during 2019, 513.000 3. The corporation of 2.000 shares of 54 par stock during 2019 for $10,000 cash 4. The company camed $126.000 in 2019 net income 5. The corporation had 4000 shares of 54 par Common Stock at $16,000 in the common stock account and...
Problem 10-36 (Algorithmic) (LO. 6, 8) In December each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 24% marginal tax bracket, is considering the following alternatives for satisfying the contribution. (1) Cash donation (2) Unimproved land held for six years ($6,810 basis) (3) Blue Corporation stock held for eight months ($6,810 basis) (4) Gold Corporation stock held for two years ($54,480 basis) Fair Market Value $45,400 $45,400...
In December each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 28% marginal tax bracket, is considering the following alternatives for satisfying the contribution. Fair Market Value (1) Cash donation $169,000 (2) Unimproved land held for six years ($25,350 basis) $169,000 (3) Blue Corporation stock held for eight months ($25,350 basis) $169,000 (4) Gold Corporation stock held for two years ($202,800 basis) $169,000 Eleanor has asked you...
Problem 10-36 (LO. 6, 8) In December of each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 24% marginal tax bracket, is considering the following alternatives for satisfying the contribution. Fair Market Value $23,000 $23,000 (1) Cash donation (2) Unimproved land held for six years ($3,000 basis) (3) Blue Corporation stock held for eight months ($3,000 basis) (4) Gold Corporation stock held for two years ($28,000 basis)...