Match each of the following items with the appropriate description, indicating whether the item increases or decreases the parent's basis in the stock of a subsidiary.
-Member's operating loss, when stock basis = $0
A)Increases stock basis of subsidiary
B)Decreases stock basis of subsidiary
C)No effect on stock basis of subsidiary

Question

Quizplus · Accepted Answer

When the stock basis is already $0, a member's operating loss does not further decrease the basis, as it cannot go below zero.

Match Each of the Following Items with the Appropriate Description