13. Joe invests $10,000 cash for 15% of the stock in a new calendar-year S corporation that leases commercial real estate. (The $10,000 consists of $6,000 from his personal savings and $4,000 he borrowed from Jane, a 25% shareholder in the company.) If Joe is allocated an $11,000 pass-through loss in the first year of operation, his basis limitation restricts his deductible loss to:

A. $10,000 .

B. $6,000

C. $0 14.

14. The at-risk rules then limit his deductible loss to:

A. $0

B. $6,000

C. $10,000

15. If Joe does not materially participate in the company's activities, what is his loss in accordance with the PAL rules?

A. $11,000

B. $0

C. $6,000