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T-accounts and the accounting equation
Required:
Record each of the following Zeke Co. events in T-accounts, and then explain how the event affects the accounting equation:
a. Received $10,000 cash by issuing common stock.
b. Purchased supplies for $500 cash.
c. Purchased land for $20,000 cash.
d. Performed services for $1,600 cash.
How much of the $25,000 ordinary loss allocated to Parker clears the tax basis hurdle for deductibility in 2010? What is Parker's stock and debt basis at the end of 2010?
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