Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
g
2
2
b
2
M
2
V
2
f
2
c
2
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
safezone safezone
wrote...
Go to Answer
Posts: 782
Rep: 67 0
7 years ago
Jeff owns 50% of an S corporation's stock with a basis in his stock of $50,000 on January 1. In addition, the S corporation owes Jeff $30,000 on January 1. The debt has a basis of $30,000 and is evidenced by a note. The S corporation reports an ordinary loss of $150,000 for the current year. The next year, it reports ordinary income of $20,000. On January 1 of the third year, the note is repaid. Due to the repayment of the note, Jeff must report what?
Textbook 
Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts

Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts


Edition: 27th
Authors:
Read 736 times
5 Replies
That's not philosophy, it's geometry
Replies
Answer verified by a subject expert
genflynngenflynn
wrote...
#1
Top Poster
Posts: 517
Rep: 13 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1
We have the most crude accounting tools. It's tragic because our accounts and our national arithmetic doesn't tell us the things that we need to know.

Related Topics

wrote...
#2
6 years ago
Quote from: genflynn (7 years ago)
Stock   Debt
1/1 Basis
Minus: Year 1 loss
12/31 Basis
Plus: Year 2 income
12/31 Basis

Amount realized
Minus: adjusted basis
Capital gain   $50,000
( 50,000)
-0-
-0-
 -0-   $30,000
 ( 25,000)
 $ 5,000
   10,000
 $15,000

$30,000
 ( 15,000)
$15,000
wrote...
#3
4 years ago
Thank you.
wrote...
#4
4 years ago
thank you
wrote...
#5
3 years ago
Thank you
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  3308 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 925
  
 9268
  
 1121