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Business, 19.10.2021 14:00 karenjunior

Vince, a single individual, is one of the founders and original shareholders of Security Consulting, Inc., a corporate security consulting firm. The company was initially capitalized with $200,000, and Vince was a 50 percent owner with an investment of $100,000. The company was structured as a C corporation. Filing requirements and permissible tax elections that could benefits the owners were made at the time the company was created. After several years of successful operations, Security Consulting lost market share to large national firms, and eventually closed down operations. Since it had no assets other than the goodwill of the business, there was nothing left to distribute to the shareholders. Assuming that there were no changes to Vince's ownership interest over the period of his ownership, and that Vince had no capital transactions in the current year, by how much can Vince reduce his adjusted gross income this year due to the company becoming worthless

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