Chang Corporation, a calendar year $ corporation has tax-exempt income of $4,000, net capital gain of $3,500, dividend income of $2,500, and ordinary business loss of $8,500 for the current year. Its sole shareholder, Peter, had a stock basis of $10,000 on January 1 . He received a cash distribution during the year from the AAA account of $16,000. How much of the ordinary loss can Peter deduct on his Form 1040 ? $8,500 54,500 $4,000