Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2021, leo paid $28,000 for 6 percent

On January 1, 2021, Leo paid $28,000 for 6 percent of the stock in BLS,...

80.2K

Verified Solution

Question

Accounting

On January 1, 2021, Leo paid $28,000 for 6 percent of the stock in BLS, an S corporation. In November, he loaned $10,000 to BLS in return for a promissory note. BLS generated a $730,000 operating loss in 2021. BLS generated $421,000 ordinary business income in 2022.

Required:

A. How much of Leos share of this income is included in his 2022 taxable income?

B. Compute Leos basis in his BLS stock and his BLS note at the end of 2022.

C. How would your answers to parts a and b change if BLSs ordinary business income was only $233,000?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

4 None of these An element have two isotopes having m and m The relative...

Basic Math
1.2K views

Below is the graph of y x Translate it to make it the graph of...

Mechanical Engineering
1.2K views

A centrifugal pump has the following characteristic: outer diameter of impeller 800 mm, width of impeller vanes...

General Management
1.2K views

How do you know what is expected of you at work? Discuss five expectations you feel...

Biology
1.2K views

6. Before an activator can bind to DNA,it must react with the substrate it regulatesthe...

Physics
1.2K views

118 B B and B3 are the three identical bulbs connected to a battery of...

Basic Math
1.2K views

Priya has planted a garden shaped like a right triangle She knows that one leg...

Calculus
1.2K views

The altitude of a triangle is increasing at a rate of 2 5 centimeters minute...

Accounting
1.2K views

Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its...

Accounting
1.2K views

The information below pertains to Metlock Company for 2026. Net income for the year...

Accounting
1.2K views

You have an investment account that started with $4,000 10years ago and which now has...

Finance
1.2K views

ki Yl skonto Etmek skonto oran yzde 6 olduunda, 510 dolarn iki ylda bugnk deeri...