In: Accounting
Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $51,900 loss this year (year 1). Assume her stock basis is $12,760 at the beginning of the year and that at the beginning of year 1 Jessica loaned Bikes-R-Us $3,690. In year 2, Bikes-R-Us reported ordinary income of $13,380. (Leave no answer blank. Enter zero if applicable.)
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