Citrus Corporation is a calendar years corporation with the following current year information: Operating loss $12,220,000) Liabilities: Notes payable, Big Apple Bank 555,000 Notes payable, Grapefruit (individual) 370,000 On January 1 Grapefruit bought 60% of Citrus Corporation for $832,500. She then loaned Citrus Corporation $370,000 (the amount above under liabilities). How much of the operating loss may Grapefruit deduct currently? Assume the excess business loss limitation does not apply. $1,202,500 $1,387,500 $1,054,500 $1,480,000