T2. Sunita is a one-third owner in Bikes-R-Us, an S corporation that experienced a $46,800 loss this year (year 1). Assume her stock basisis $10,720 at the beginning of the year and that at the beginning of year 1 Sunita loaned Bikes-R-Us $3,180. In year 2, Bikes-R-Usreported ordinary income of $12,360.Note: Leave no answer blank. Enter zero if applicable.Required:a. What amount is Sunita allowed to deduct in year 1?b. What are her stock and debt bases in the corporationat the end of year 1?c. What are her stock and debt bases in the corporation at the end of year 2?a. Deductible amountb. Stock basisc. Debt basisYear 1Year 2

The amount of loss deducted in a year is equal to the stock basis in the company. The excess amount…

$10,720 at the beginning of the year and that at the beginning of year 1 Sunita loaned Bikes-R-Us $3,180. In year 2, Bikes-R-Us ported ordinary income of $12,360. ote: Leave no answer blank. Enter zero if applicable. equired: What amount is Sunita allowed to deduct in year 1? What are her stock and debt bases in the corporation at the end of year 1? What are her stock and debt bases in the corporation at the end of year 2? a. Deductible amount b. Stock basis c. Debt basis Year 1 Year 2

$10,720 at the beginning of the year and that at the beginning of year 1 Sunita loaned Bikes-R-Us $3,180. In year 2, Bikes-R-Us ported ordinary income of $12,360. ote: Leave no answer blank. Enter zero if applicable. equired: What amount is Sunita allowed to deduct in year 1? What are her stock and debt bases in the corporation at the end of year 1? What are her stock and debt bases in the corporation at the end of year 2? a. Deductible amount b. Stock basis c. Debt basis Year 1 Year 2

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter12: S Corporations

Section: Chapter Questions

Problem 22CE

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