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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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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