Supposethat at the Beginning of 2020 Jamaal's Basis in His

Multiple Choice

Supposethat 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. After any loss deductions this year, what is Jamaal's stock and debt basis at the end of the year if Jamaal is a 50percent shareholder of the S corporation?

A) $27,000 stock basis; $10,000 debt basis
B) $0 stock basis; $10,000 debt basis
C) $67,000 stock basis; $10,000 debt basis
D) ($13,000) stock basis; $10,000 debt basis
E) None of the choices are correct.