Orange, Inc., a calendar year corporation in Clemson, South Carolina, elects S corporation status for 2016. The

Question:

Orange, Inc., a calendar year in Clemson, South Carolina, elects S status for 2016. The company generated a $74,000 NOL in 2015 and another NOL of $43,000 in 2016. Orange recorded no other transactions for the year.
At all times in 2015 and 2016, the stock of the is owned by the same four shareholders, each owning 25% of the stock. Pete, one of the shareholders, holds a $6,020 basis in the Orange stock at the beginning of 2016. Identify the Federal income tax issues that Pete faces?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...