Birch Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, James, who has operated it as an S corporation since its inception. Last year, James made a direct loan to Birch Corp. in the amount of $7,200. Birch Corp. has paid the interest on the loan but has not yet paid any principal. (Assume the loan qualifies as debt for tax purposes.) For the year, Birch experienced a $25,500 business loss.
What amount of the loss clears the tax-basis limitation, and what is James’s basis in his Birch Corp. stock and Birch Corp. debt in each of the following alternative scenarios?
a. At the beginning of the year, James's basis in his Birch Corp. stock was $47,600 and his basis in his Birch Corp. debt was $7,200.
Amount of loss clearing tax basis limitation
Basis in stock
Basis in debt
b. At the beginning of the year, James's basis in his Birch Corp. stock was $9,300 and his basis in his Birch Corp. debt was $7,200.
Amount of loss clearing tax basis limitation
Basis in stock
Basis in debt
c. At the beginning of the year, James's basis in his Birch Corp. stock was $0 and his basis in his Birch Corp. debt was $7,200.
Amount of loss clearing tax basis limitation
Basis in stock
Basis in debt

Which of the following statements accurately describes how costs and benefits are calculated?

What impact did the economic opportunities in pennsylvania and new york have on virginia? a. virginia planters started to migrate to new york. b. new yorkers began buying up cheap virginia real estate. c. virginians found themselves resorting increasingly to slavery. d. virginians loosened their slave laws to attract more migrants.

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.