Suppose That at the Beginning of 2020 Jamaal's Basis in His

Multiple Choice

Suppose that at the beginning of 2020 Jamaal's basis in his S corporation stock is $1,000 and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation. In 2020, Jamaal's share of S corporation income is $4,000, and he received a $7,000 distribution from the S corporation. How muchtotal income does Jamaal report in 2020 from these transactions?

A) $0
B) $4,000
C) $6,000
D) $7,000
E) None of the choices are correct.