Orange, Inc., a calendar year corporation in Clemson, South Carolina, elects S corporation status for 2019. The company generated a $229,600 NOL in 2018 and another NOL of $137,760 in 2019. Orange stock always is owned by the same four shareholders, each owning 25% of the stock. Pete, one of the shareholders, holds a $18,368 basis in this Orange stock at the beginning of 2019. Complete the statement below that outlines the Federal income tax issues that Pete faces. The 2018 C corporation NOL of $229,600 forward into the S corporation year. Therefore, the deductible loss in 2019 by Pete is s with a $ carryover.

Orange, Inc., a calendar year corporation in Clemson, South Carolina, elects S corporation status for 2019. The company generated a $229,600 NOL in 2018 and another NOL of $137,760 in 2019. Orange stock always is owned by the same four shareholders, each owning 25% of the stock. Pete, one of the shareholders, holds a $18,368 basis in this Orange stock at the beginning of 2019. Complete the statement below that outlines the Federal income tax issues that Pete faces. The 2018 C corporation NOL of $229,600 forward into the S corporation year. Therefore, the deductible loss in 2019 by Pete is s with a $ carryover.

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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