Citrus Corporation is a calendar year S corporation with the following current year information: ...
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Accounting
Citrus Corporation is a calendar year S corporation with the following current year information:
Operating loss $(240,000)
Liabilities:
Notes payable, Big Apple Bank 60,000
Notes payable, Grapefruit (individual) 40,000
On January 1 Grapefruit bought 60% of Citrus Corporation for $90,000. She then loaned Citrus Corporation $40,000 (the amount above under liabilities). How much of the operating loss may Grapefruit deduct currently? Assume the excess business loss limitation does not apply.
Group of answer choices
$150,000
$114,000
$160,000
$130,000
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