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  3. on january 1,2022 , leo paid $15,000 for 5 percent

On January 1,2022 , Leo paid $15,000 for 5 percent of the stock in BLS,...

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Accounting

image On January 1,2022 , Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $8,000 to BLS in return for a promissory note. BLS generated a $600,000 operating loss in 2022 . BLS generated $408,000 ordinary business income in 2023. Required: a. How much of Leo's share of this income is included in his 2023 taxable income? b. Compute Leo's basis in his BLS stock and his BLS note at the end of 2023. c. How would your answers to parts a and b change if BLS's ordinary business income was only $220,000 ? Complete this question by entering your answers in the tabs below. How would your answers change if BLS's ordinary business income was only $220,000

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