Bill and Guilda each own 50 percent of the stock of Radiata Corporation, an S corporation. Guilda’s basis in her stock is $25,000. On July 31, 2014, Bill sells his stock, with a basis of $40,000, to Loraine for $50,000. For the 2014 tax year, Radiata Corporation has a loss of $100,375.
a. Calculate the amount of the corporation’s loss that may be deducted by Bill on his 2014 tax return. $ _____________
b. Calculate the amount of the corporation’s loss that may be deducted by Guilda on her 2014 tax return. $ _____________
c. Calculate the amount of the corporation’s loss that may be deducted by Loraine on her 2014 tax return. $ _____________