A calendar year S corporation reports an ordinary loss of $80,000 and a capital loss of $20,000. Mei Freiberg owns 30% of the corporate stock and has a $24,000 basis in her stock. She has asked that you determine the amounts of the ordinary loss and capital loss, if any, that flow through to Freiberg.

Complete the tax memo below for the files, outlining your computations.

TAX FILE MEMORANDUM Date: December 3, 2015 RE: Flow-Through of Losses If a shareholder's basis is to allow the full use of the flow-through losses and there is one type of loss, the amount of each deductible flow-through loss is determined . Freiberg's share of the operating loss is $_________ , and her share of the capital loss is $___________ . Since her basis in the stock is $24,000, only $___________ is deductible. Thus, $_________ of the operating loss and $_________ of the capital loss is deducted currently by Freiberg. The unused losses are carried years.