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 $(660,000)
Liabilities:
Notes payable, Big Apple Bank 110,000
Notes payable, Grapefruit (individual) 110,000
On January 1, Orange (an individual) bought 50% of Citrus Corporation stock for $165,000. How much of the operating loss may Orange deduct currently? Assume the excess business loss limitation does not apply.
Group of answer choices
$275,000
$330,000
$220,000
$165,000
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