Question: Indicate whether the following statements are True or False regarding a shareholder's basis in 5 corporation stock. a. A shareholder's basis is increased by nonseparately
Indicate whether the following statements are "True" or "False" regarding a shareholder's basis in 5 corporation stock. a. A shareholder's basis is increased by nonseparately computed income and separately stated income items. b. Once stock basis is zero, any additional basis reductions from losses or deductions, but not distributions, decrease (but not below zero) the shareholder's basis in loans made to the S corporation. c. If a loss and a distribution occur in the same year, the distribution reduces the stock basis last, after the loss: d. Corporate borrowing has no effect on S corporation shareholder basis
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