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 $32,000 and Jamaal has directly loaned the S corporation $9,910. During 2020, the S corporation reported an $84,500 ordinary business loss and no separately stated items. How much of the ordinary loss is deductible by Jamaal if he owns 50percent of the S corporation?

A) $9,910
B) $32,000
C) $41,910
D) $42,250
E) None of the choices are correct.