Question: User Answer Incorrect On January 1 , Year 1 , Ginger, an individual, paid $ 2 0 , 0 0 0 for 5 percent of

User Answer Incorrect
On January 1, Year 1, Ginger, an individual, paid $20,000 for 5 percent of the stock in Root Corp., an S corporation. In November Year 1, he loaned $9,000 to Root Corp.in return for a promissory note. Root Corp.generated a $650,000 operating loss in Year 1. Root Corp.generated $413,000 ordinary business income in Year 2. Compute Gingers basis in his Root Corp.stock at the end of Year 2.

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