Bill and Guilda each own 50 percent of the stock of Radiata Corporation, an S corporation. Guilda's basis in her stock is $21,000. On May 26, 2019, Bill sells his stock, with a basis of $40,000, to Loraine for $50,000. For the 2019 tax year, Radiata Corporation has a loss of $104,000. Round your final answers to the nearest dollar. Use a 365-day year in your computations. a. Calculate the amount of the corporation's loss that may be deducted by Bill on his 2019 tax return. $ b. Calculate the amount of the corporation's loss that may be deducted by Guilda on her 2019 tax return. $ c. Calculate the amount of the corporation's loss that may be deducted by Loraine on her 2019 tax return.
Bill and Guilda each own 50 percent of the stock of Radiata Corporation, an S corporation. Guilda's basis in her stock is $21,000. On May 26, 2019, Bill sells his stock, with a basis of $40,000, to Loraine for $50,000. For the 2019 tax year, Radiata Corporation has a loss of $104,000.
Round your final answers to the nearest dollar. Use a 365-day year in your computations.
a. Calculate the amount of the corporation's loss that may be deducted by Bill on his 2019 tax return.
$
b. Calculate the amount of the corporation's loss that may be deducted by Guilda on her 2019 tax return.
$
c. Calculate the amount of the corporation's loss that may be deducted by Loraine on her 2019 tax return.
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