On December 31, 2011, Erica Sumners owns one share of an S corporation's 10 outstanding shares of stock.The basis of Erica's share is $300.During 2012, the S corporation has no income or deductions, but incurs a loss of $3,650.Determine the amount of the loss allocated to Erica, and calculate her stock basis at the end of 2012.

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The Answer of On December 31, 2011, Erica Sumners owns one share of an S corporation's 10 outstanding shares of stock.The basis of Erica's share is $300.During 2012, the S corporation has no income or deductions, but incurs a loss of $3,650.Determine the amount of the loss allocated to Erica, and calculate her stock basis at the end of 2012.

On December 31, 2011, Erica Sumners Owns One Share of an S