Question: Candy owns 40 of the stock of Park Inc an
Candy owns 40% of the stock of Park, Inc., an S corporation. Her stock basis is $25,000, and she loaned $10,000 to the corporation during the year. How much of Park's $100,000 operating loss can Candy deduct for this year? Show your computation of the tax consequences in spreadsheet form, and include them in a memo to your manager.
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