Suppose at the Beginning of 2018, Jamaal's Basis in His

Multiple Choice

Suppose at the beginning of 2018, Jamaal's basis in his S corporation stock was $27,000 and that Jamaal has directly loaned the S corporation $10,000. During 2018, 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% of the S corporation?

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