Ask Question
19 August, 17:19

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

+5
Answers (1)
  1. 19 August, 17:43
    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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers