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Check my answer.   Kaiwan, Inc., a calendar year S corporation, is partly owned by Sharrod, whose beginning stock basis is $32,000. During the year, Sharrod’s share of a Kaiwan long-term capital gain (LTCG) is $5,000, and his share of an ordinary loss is $18,000. Sharrod then receives a $20,000 cash distribution. Compute the following. A Sharrod’s deductible loss.   Beginning Basis 32000   Add Long -term cap gain 5000     37000   Less Distribution -20000   Basis for loss limitation purp 17000   Deductible loss 17000   B Sharrod’s suspended loss. Share of loss 20000 Deductible loss -17000 Suspended loss 3000

Check my answer.   Kaiwan, Inc., a calendar year S corporation, is partly owned by Sharrod, whose beginning stock basis is $32,000. During the year, Sharrod’s share of a Kaiwan long-term capital gain (LTCG) is $5,000, and his share of an ordinary loss is $18,000. Sharrod then receives a $20,000 cash distribution. Compute the following. A Sharrod’s deductible loss.   Beginning Basis 32000   Add Long -term cap gain 5000     37000   Less Distribution -20000   Basis for loss limitation purp 17000   Deductible loss 17000   B Sharrod’s suspended loss. Share of loss 20000 Deductible loss -17000 Suspended loss 3000

FINANCIAL ACCOUNTING
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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Kaiwan, Inc., a calendar year S corporation, is partly owned by Sharrod, whose beginning stock basis is $32,000. During the year, Sharrod’s share of a Kaiwan long-term capital gain (LTCG) is $5,000, and his share of an ordinary loss is $18,000. Sharrod then receives a $20,000 cash distribution. Compute the following.

A Sharrod’s deductible loss.

 

Beginning Basis

32000
 

Add Long -term cap gain

5000
   

37000
 

Less Distribution

-20000
 

Basis for loss limitation purp

17000
 

Deductible loss

17000

 

B Sharrod’s suspended loss.

Share of loss

20000

Deductible loss

-17000

Suspended loss

3000
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