Jessica is a one-third owner in bikes-r-us, an s corporation that experienced a $47,100 loss this year (year 1). assume her stock basis is $10,840 at the beginning of the year and that at the beginning of year 1 jessica loaned bikes-r-us $3,210. in year 2, bikes-r-us reported ordinary income of $12,420. (leave no answer blank. enter zero if applicable.)

a. what amount is jessica allowed to deduct in year 1?
b. what are her stock and debt bases in the corporation at the end of year 1? (leave no answer blank. enter zero if applicable.)
c. what are her stock and debt bases in the corporation at the end of year 2? (leave no answer blank. enter zero if applicable.)

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Secure guards but not completely sure

Answervirtual team;