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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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.
11.
Stock
Note
Basis before loss
Loss
Total 2019
Gain
Total 2020](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75ca85e8-8178-465f-b179-362934619ee4%2Fca1e7f16-a88b-4f1d-b695-62d50d539254%2Fy38qv7f_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
11.
Stock
Note
Basis before loss
Loss
Total 2019
Gain
Total 2020
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