Becker CPA Review $23-14$

Which statement is correct?

a$.$ A shareholder's basis in an $\backslash ($ S $\backslash )$ corporation is not reduced by distributions from the corporation.

b$.$ An S corporation may have $120$ shareholders.

c$.$ A shareholder's basis in an S corporation is increased by the shareholder's guarantee of corporate debt.

d$.$ Passive loss limitations may apply to a shareholder's losses from an $\backslash ($ S $\backslash )$ corporation.