McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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Chandra was the sole shareholder of Pet Emporium that was originally formed as an S corporation.When Pet Emporium terminated its S election on August 31, 2010, Chandra had a stock basis and an at-risk amount of zero.Chandra also had a suspended loss from Pet Emporium of $9,000.What
amount of the suspended loss is Chandra allowed to deduct, and what is her basis in her Pet Emporium stock at the end of the post-termination transition period under the following alternative scenarios (assume Pet Emporium files for an extension to file its tax returns)?
a.Chandra makes capital contributions of $7,000 on August 30, 2011, and $4,000 on September 14, 2011.b.Chandra makes capital contributions of $5,000 on September 1, 2011, and $5,000 on September 30, 2011.c.Chandra makes a capital contribution of $10,000 on August 31, 2011.d.Chandra makes a capital contribution of $10,000 on October 1, 2011.