Chris is the 100% shareholder of the Denture Corporation, an S corporation, and has a basis of $10,000 in the stock as of January 1, 2019. Chris also made a $15,000 loan to Denture Corporation as of January 1, 2019. During 2019, Denture Corporation had a $5,000 capital gain, made a $2,000 cash distribution to Chris, and incurred a $20,000 ordinary taxable loss. a) What is Chris’ stock basis at the end of 2019? _____________________ b) What is his loan basis at the end of 2019? ______________________
Chris is the 100% shareholder of the Denture Corporation, an S corporation, and has a basis of $10,000 in the stock as of January 1, 2019. Chris also made a $15,000 loan to Denture Corporation as of January 1, 2019. During 2019, Denture Corporation had a $5,000 capital gain, made a $2,000 cash distribution to Chris, and incurred a $20,000 ordinary taxable loss. a) What is Chris’ stock basis at the end of 2019? _____________________ b) What is his loan basis at the end of 2019? ______________________
Chapter22: S Corporations
Section: Chapter Questions
Problem 27P
Related questions
Question
Chris is the 100% shareholder of the Denture Corporation, an S corporation, and has a basis of $10,000 in the stock as of January 1, 2019. Chris also made a $15,000 loan to Denture Corporation as of January 1, 2019. During 2019, Denture Corporation had a $5,000
- a) What is Chris’ stock basis at the end of 2019? _____________________
- b) What is his loan basis at the end of 2019? ______________________
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT