Citrus Corporation is a calendar year S corporation with the following current year information: Operating...
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Citrus Corporation is a calendar year S corporation with the following current year information: Operating loss $(1,920,000) Liabilities: Notes payable, Big Apple Bank 480,000 Notes payable, Grapefruit (individual) 320,000 On January 1 Grapefruit bought 60% of Citrus Corporation for $720,000. She then loaned Citrus Corporation $320,000 (the amount above under liabilities). How much of the operating loss may Grapefruit deduct currently? Assume the excess business loss limitation does not apply. O $912,000 O $1,200,000 $1,040,000 O $1,280,000
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