Result of the corporate losses


Lisa invested $18,000 in Carson (a C corporation) for a 10% interest and also invested $30,000 in Samson ( an S corporation) for 20% interest. for the current year, Carson had a taxable loss of $80,000 and Samson had a taxable loss of $60,000. no distributions were made. if Lisa is in the 35% marginal tax bracket, what is the maximum that she would be able to save in taxes in the current year as a result of these corporate losses? would it be

$16,800,

$12,000,

$7,000,

$4,200, or

$2,800.

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Accounting Basics: Result of the corporate losses
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