Ask Question
30 June, 08:45

On January 2, 2019, David loans his S corporation $10,000. By the end of 2019 David's stock basis is zero and the basis in his note has been reduced to $8,000. During 2020, the company's operating income is $10,000. The company makes 2020 distributions to David of $11,000. David reports a (n

+4
Answers (1)
  1. 30 June, 09:12
    0
    2000LTC

    Explanation:

    From the given data, the distribution which is $8000 will be subtracted from $10000 which is David's stock basis and this will remain l $2000

    That is to say

    ($10000-$8000) = $2000 As the

    stock basis.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 2, 2019, David loans his S corporation $10,000. By the end of 2019 David's stock basis is zero and the basis in his note has ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers