During the year, an S corporation incurs a $110,000 net operating loss. Eloise, the sole shareholder, has a $75,000 stock basis, and there is a $100,000 balance in AAA at the beginning of the year.

Which statement is correct?

a) Eloise may show a $110,000 loss deduction on her Form 1040.

b) At the end of the year, there is a zero basis in both Eloises stock basis and the AAA.

c) At the end of the year, Eloise has a zero basis in the stock, and there is a negative $10,000 balance in the AAA.

d) Eloise may deduct $100,000 of the loss.

e) None of the above statements is correct.

Please show your work.