On January 1, Bobby and Alice equally own all of the stock of an electing S corporation called Prairie Dirt Delight. The entity incurs a $60,000 loss for a nonleap year. On the 200th day of the year (not a leap year), Bobby sells his one-half of the stock to his son, Saul. How much of the $60,000 loss, if any, is allocated to Bobby? a. $6,781
b. $13,562
c. $16,438
d. $23,219

the Loss allocated to Bobby is $6,781

Explanation:

The amount of loss allocated to Bobby is as follows;

Loss allocated to Bobby is

= Total loss for the year × Share of Alice × Share of Bobby × for the remaining days

= $60,000 × 50% × 50% × (365 - 200) ÷ 365

= $6,781

Hence, the Loss allocated to Bobby is $6,781

Therefore the correct option is a.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.