22. At the beginning of the tax year, Tim had a $2,000 stock basis in the S corporation, World, Inc. Tim owns 25% of the outstanding World, Inc. stock. At the end of the tax year, World, Inc. reported on its Schedule K, a $16,000 ordinary loss, $4,000 of interest income, and $2,000 in nondeductible expense. Tim also has $10,000 in flow-through reportable income from other S corporations. How much of the World, Inc. ordinary loss can Tim deduct on his personal return? . $0 . $2,500 $3,000 $4,000 .

22. At the beginning of the tax year, Tim had a $2,000 stock basis in the S corporation, World, Inc. Tim owns 25% of the outstanding World, Inc. stock. At the end of the tax year, World, Inc. reported on its Schedule K, a $16,000 ordinary loss, $4,000 of interest income, and $2,000 in nondeductible expense. Tim also has $10,000 in flow-through reportable income from other S corporations. How much of the World, Inc. ordinary loss can Tim deduct on his personal return? . $0 . $2,500 $3,000 $4,000 .

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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D.7.
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