Byron and Vicky formed Hera Corporation as an S corporation, with each shareholder contributing $14.000 in exchange for

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Byron And Vicky Formed Hera Corporation As An S Corporation With Each Shareholder Contributing 14 000 In Exchange For 1 (21.51 KiB) Viewed 91 times

Byron and Vicky formed Hera Corporation as an S corporation, with each shareholder contributing $14.000 in exchange for stock. In addition, Vicky loaned the corporation $12,000, and the corporation borrowed another $9.000 from the bank. In the current year, the corporation incurred a $38,000 operating loss. In the next year, the corporation will earn $14,000 of operating income. Read the requirements Copy Requirement a. For the current year and next year, determine the pass-through items for each shareholder and each shareholder's stock basis at the end of each year. Also, determine Vicky's debt basis at the end of each year. Begin by determining each shareholder's stock basis and Vicky's debt basis at the end of each year. Select the labels for any increases and/or decreases to basis and then compute the amounts. (Complete all input fields. Enter "O" for zero amounts. Use parentheses or a minus sign for a decrease to basis.) Vicky Byron Stock basis Stock basis Debt basis Beginning basis Basis at the end of current year Basis at the end of next year