Emma Owns 40% of Johnson, Inc

Multiple Choice

Emma owns 40% of Johnson, Inc., a regular C corporation, that reported a net loss of $50,000 for the year.Emma acquired her stock on January 1 of the current year by investing $4,000 cash.In July, the corporation took out a bank loan for $25,000.How much of the loss can Emma deduct on her tax return for the year?

A) $0
B) $4,000
C) $9,000
D) $10,000