Suppose That at the Beginning of 2020 Jamaal's Basis in His

Multiple Choice

Suppose that at the beginning of 2020 Jamaal's basis in his S corporation stock was $27,000 and Jamaal has directly loaned the S corporation $10,000. During 2020, the S corporation reported an $80,000 ordinary business loss and no separately stated items. How much of the ordinary loss is deductible by Jamaal if he owns 50 percent of the S corporation?

A) $10,000
B) $27,000
C) $37,000
D) $40,000
E) None of the choices are correct.