Al sal and val are equal shareholders in an s corporation


Al, Sal, and Val are equal shareholders in an S Corporation. Al is not actively involved in management of business activities. Sal and Val are actively involved in managing business activities. They all have adequate stock basis and at-risk amounts to absorb losses. The S Corporation suffers a substantial loss for the year. Al is in the least favorable tax position. Why ? Give at least two reasons for this.

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Financial Management: Al sal and val are equal shareholders in an s corporation
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