Tax inc.s liabilities at the end of 2004 included 100000 of, Ask an Expert

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Bill and Ken own Tax, Inc.(an S corporation)equally. In 2004, the corporation reported a $130,000 ordinary loss. Tax Inc.'s liabilities at the end of 2004 included $100,000 of accounts payable, $150,000 of mortgages payable, and a $20,000 note owned to Bill. Each owner has a $40,000 adjusted basis for his stock on January 1, 2004. Compute the loss reportable by Bill.

a. $65,000

b. $60,000

c. $40,000

d. none of the answers are correct

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M967470

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