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Oliver and James are equal owners of OJ Company. During the current year, when OJ Company is insolvent by $100,000, a creditor reduces one of OJ's debts by $50,000. For the year, OJ incurs a $20,000 operating loss. Oliver and James are both solvent. Oliver's basis in OJ is $30,000; James's basis is $40,000. Determine the effect of OJ's debt discharge and net operating loss on Oliver and James assuming that
a. OJ is organized as a partnership.
b. OJ is organized as an S corporation.
Create an activity graph from the breakdown structure using Microsoft Visio or its open source alternative, Dia. Be sure to identify the time estimates and critical path in your submission. Note: The graphically depicted solution is not included i..
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