For the 2018 tax year, King Corporation, a calendar-year S corporation, had an ordinary loss from operating activities of $160,000 and a long-term capital gain from the sale of investment property of $40,000. Jordan is a 40% shareholder in King Corporation and his basis in his stock at the beginning of 2018 was $50,000. On the last day of the 2018 tax year, King Corporation's outstanding debt incurred in 2017 remains $80,000, 25 percent of which ($20,000) is owed to Jordan. What is Jordan's basis in his S corporation stock and debt on January 1, 2019?

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The Answer of For the 2018 tax year, King Corporation, a calendar-year S corporation, had an ordinary loss from operating activities of $160,000 and a long-term capital gain from the sale of investment property of $40,000. Jordan is a 40% shareholder in King Corporation and his basis in his stock at the beginning of 2018 was $50,000. On the last day of the 2018 tax year, King Corporation's outstanding debt incurred in 2017 remains $80,000, 25 percent of which ($20,000) is owed to Jordan. What is Jordan's basis in his S corporation stock and debt on January 1, 2019?

For the 2018 Tax Year, King Corporation, a Calendar-Year S