1. Riley, a 50% S corporation shareholder, began the year with a stock basis of $100,000 and, during the year, directly loan the S corporation $50,000. Ordinary business loss for the year was $360,000. How much stock and debt basis does Riley have at the end of the year?

   1. $0 stock basis; $0 debt basis

   2. $0 stock basis; ($30,000) debt basis

   3. $(30,000) stock basis; $0 debt basis

   4. $0 stock basis; $20,000 debt basis

1. 
   

Answer rating: 100% (QA)

Holding of Riley Ordinary Ordinary business los on Rileys 4 Balance Begining of the year Direct Jea... View the full answer