Edward owns 25% of the stock of an S corporation throughout 2022. During 2022, the corporation sustained an ordinary loss from trade or business activities in the amount of $100,000. Edward's stock basis in the corporation at the beginning of the year was $18,000. The corporation did not distribute any assets to the owners during 2022. During 2022, Edward loaned $10,000 to the corporation, and the loan has not been repaid as of December 31, 2022. What amount of loss allocated to Edward for 2022 can Edward report in his 2022 Form 1040?

		a. $25,000.
		b. $100,000.
		c. $18,000.
		d. $28,000.

What is Edward's stock basis as of January 1, 2022?

		a. $3,000.
		b. zero.
		c. $18,000.
		d. $28,000.

If the corporation pays off the $10,000 loan on January 1, 2022, how much income or gain, if any, would Edward recognize in 2022? Assume the S Corporation has no income or loss for 2022.

		a. $3,000.
		b. zero.
		c. $7,000.
		d. $28,000.