Fox corp, an S corp, had an ordinary loss of $36,500 for the year eneded December 31, year 2. At Jan 1, year 2, Duffy owned 50% of Fox's stock. Duffy held the stock for 40 days in year 2 before selling the entire 50% interest to an unrelated third party. Duffy's basis for the stock was $10,000. Duffy was a full-time employee of Fox until the stock was sold. Duffy's share of Fox's loss was? a $0 , b $2,000 , c $10,000 d $18,250 My answer is b

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter22: S Corporations
Section: Chapter Questions
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Fox corp, an S corp, had an ordinary loss of $36,500 for the year eneded December 31, year 2. At Jan 1, year 2, Duffy owned 50% of Fox's stock. Duffy held the stock for 40 days in year 2 before selling the entire 50% interest to an unrelated third party. Duffy's basis for the stock was $10,000. Duffy was a full-time employee of Fox until the stock was sold. Duffy's share of Fox's loss was?

a $0 , b $2,000 , c $10,000 d $18,250

My answer is b

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