Determine the amounts of the ordinary loss and capital loss


Question - A calendar year S corporation reports an ordinary loss of $80,000 and a capital loss of $20,000. Mei Freiberg owns 30% of the corporate stock and has a $24,000 basis in her stock. Determine the amounts of the ordinary loss and capital loss, if any, that flow through to Freiberg. Prepare a tax memo for the files, explaining your computations.

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Accounting Basics: Determine the amounts of the ordinary loss and capital loss
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