11. T, a 40% owner, has a basis in a S Corporation's stock of $12,000 and in a note receivable from the S Corporation of $10,000. The S Corporation has a net operating loss of $40,000 in 2020 and a gain of $30,000 in 2021. Compute the basis of the stock and the note and the amount of the ordinary loss and/or income that flows through to T in 2019 and 2020. Stock Note Basis before loss Loss Total 2019 Gain Total 2020

11. T, a 40% owner, has a basis in a S Corporation's stock of $12,000 and in a note receivable from the S Corporation of $10,000. The S Corporation has a net operating loss of $40,000 in 2020 and a gain of $30,000 in 2021. Compute the basis of the stock and the note and the amount of the ordinary loss and/or income that flows through to T in 2019 and 2020. Stock Note Basis before loss Loss Total 2019 Gain Total 2020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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