Dawn Adams owns 60% of a calendar year S corporation during 2010. Her stock basis on December 31, 2009 is $17,000, and her debt basis is $2,000 from her loan to the corporation.
a. If Dawn's share of the S corporation loss for 2010 is ($22,000), what amount may she deduct on her individual tax return for 2010?
b. If Dawn's share of the S corporation income for 2011 is $10,000 what total amount does she report on her individual tax return for 2011?
c. What are the ending balances in her stock and debt bases at the end of 2011?