Randall owns 800 shares in Fabrication,Inc.,an S corporation in Moss Hill,Texas.In 2008,his basis in his stock is $30,000,before the adjustment for this year's losses.During 2008,Randall's share of the corporation's ordinary loss is $20,000 and his share of its capital loss is $15,000.How much can Randall deduct due to these losses?
A) None.
B) $15,000 ordinary loss; $10,000 capital loss.
C) $17,143 ordinary loss; $12,857 capital loss.
D) $20,000 ordinary loss; $15,000 capital loss.
E) Some other amounts.
Correct Answer:
Verified
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