What are Jenna’s tax consequences in 2019? b. 2020? c. What is Jenna's basis in her Mockingbird stock as of January 1, 2020? d. January 1, 2021?
What are Jenna’s tax consequences in 2019? b. 2020? c. What is Jenna's basis in her Mockingbird stock as of January 1, 2020? d. January 1, 2021?
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 32CE
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| Jenna owns 30% of the stock in Mockingbird, a calendar year S corporation. Her basis in the stock as of January 1, 2019, is $130,000. Mockingbird has an operating loss of $500,000 in 2019 and an operating profit of $600,000 in 2020. Jenna withdraws $70,000 in cash from the corporation in 2020. | ||||||
| a. What are Jenna’s tax consequences in 2019? | ||||||
| b. 2020? | ||||||
| c. What is Jenna's basis in her Mockingbird stock as of January 1, 2020? | ||||||
| d. January 1, 2021? |
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