The ABC Inc filed for bankruptcy and all shareholders incurs loss. Only two shareholders with 60% and 40% outstanding shares owning each. Shareholder with 60% ownership contributed $162,000 and shareholder with 40% contributed $108,000 in return for the ownership interest. How much should be reported on the Form 1040 for filing tax return individually by each shareholders?

Answer rating: 100% (QA)

Individual shareholders owning 20 each of the shares will report ... View the full answer