Jenna owns 30% of the stock in mockingbird, a calendar year S corporation. Her basis in the stock as of January 1, 2019, is $ 130,000. Mockingbird has an operating loss of $ 500,000 in 2019 and an operating profit of $600,000 in 2020 Jenna withdraws $70,000 in cash from the corporation in 2020 A.What are Jenna’s tax consequences in 2019 B2020 C. What is Jenna’s basis in her Mockingbird stock as of January 1, 2020 D January 1, 2021
Jenna owns 30% of the stock in mockingbird, a calendar year S corporation. Her basis in the stock as of January 1, 2019, is $ 130,000. Mockingbird has an operating loss of $ 500,000 in 2019 and an operating profit of $600,000 in 2020 Jenna withdraws $70,000 in cash from the corporation in 2020 A.What are Jenna’s tax consequences in 2019 B2020 C. What is Jenna’s basis in her Mockingbird stock as of January 1, 2020 D January 1, 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jenna owns 30% of the stock in mockingbird, a calendar year S corporation. Her basis in the stock as of January 1, 2019, is $ 130,000. Mockingbird has an operating loss of $ 500,000 in 2019 and an operating profit of $600,000 in 2020
Jenna withdraws $70,000 in cash from the corporation in 2020
A.What are Jenna’s tax consequences in 2019
B2020
C. What is Jenna’s basis in her Mockingbird stock as of January 1, 2020
D January 1, 2021
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