Stevje D. contributed property to Anlmal Corp, an S-Corporation, with a FMV of $50,000 and a basis of $30,000 in Y1 for a 50% ownership percentage. During Y1 and Y2, Animal Corp. reported income totaling $50,000 and made distributions tataling $100,000 (proportionally to each shareholder). In Y3 Animal Corp. reportea an ordinary business loss of $20,000. What was Stevle D's deductible Y3 loss attributable to Animal Corp.? $0 deducoble loss Tr$10,000 deductible loss D$5.000 de.los elu loss $7.500 deductible loss
Stevje D. contributed property to Anlmal Corp, an S-Corporation, with a FMV of $50,000 and a basis of $30,000 in Y1 for a 50% ownership percentage. During Y1 and Y2, Animal Corp. reported income totaling $50,000 and made distributions tataling $100,000 (proportionally to each shareholder). In Y3 Animal Corp. reportea an ordinary business loss of $20,000. What was Stevle D's deductible Y3 loss attributable to Animal Corp.? $0 deducoble loss Tr$10,000 deductible loss D$5.000 de.los elu loss $7.500 deductible loss
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 6MCQ
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Transcribed Image Text:Stevje D. cantributed property to Anlmal Corp, an S-Corporation, with a FMV of
$50,000 and a basis of $30,000 in Y1 for a 50% ownership percentage. During Y1
and Y2, Animal Corp. reported income totaling $50,000 and made distributions
tataling $100,000 (proportionally to each shareholder). In Y3 Animal Corp. reported
an ordinary business loss of $20,000. What was Stevle D's deductible Y3 loss
attributable to Animal Corp.?
$0 deducoible loss
Tr $10,000 deductible loss
$5.000de los elu loss
$7.500 deductible loss
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