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3 June, 09:53

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

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  1. 3 June, 11:51
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    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.
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