Problem 12-47 (LO. 1, 6, 8, 9, 11) Orange, Inc., a calendar year corporation, elects S corporation status for 2020. The company generated a $74,000 NOL in 2019 and another NOL of $43,000 in 2020. Orange recorded no other transactions for the year. At all times in 2019 and 2020, the stock of the corporation is owned by the same four shareholders, each owning 25% of the stock. Pete, one of the shareholders, has a $6,020 basis in the Orange stock at the beginning of 2020. Complete the statement below that outlines the Federal income tax issues that Pete faces. The 2019 C corporation NOL of $74,000 does not carry forward into the S corporation year. Therefore, the deductible loss in 2020 by Pete is $fill in the blank 2 , with a $fill in the blank 3 carryover.

Problem 12-47 (LO. 1, 6, 8, 9, 11) Orange, Inc., a calendar year corporation, elects S corporation status for 2020. The company generated a $74,000 NOL in 2019 and another NOL of $43,000 in 2020. Orange recorded no other transactions for the year. At all times in 2019 and 2020, the stock of the corporation is owned by the same four shareholders, each owning 25% of the stock. Pete, one of the shareholders, has a $6,020 basis in the Orange stock at the beginning of 2020. Complete the statement below that outlines the Federal income tax issues that Pete faces. The 2019 C corporation NOL of $74,000 does not carry forward into the S corporation year. Therefore, the deductible loss in 2020 by Pete is $ X , with a $ X carryover