Solo owns 100% of the stock in Cup Corporation, an S Corp. Solo's stock basis is $75,000 at the beginning of Year 1. During Year 1, Cup Corporation incurs an ordinary loss of $100,000, and in Year 2 Cup Corporation has $50,000 of income. What income/(loss) will Solo report on his tax return in Year 1? What income /(loss) will Solo report on his tax return in Year 2?

Answer rating: 100% (QA)

Year 1 Cup Corporation incurred an ordinary loss of 100000 As the sole shareholder of an S Corp Solo ... View the full answer