Fact Pattern:

Day Corporation, an S corporation, reported a $$73,000$ ordinary loss for Year $1($a non$-$leap year$).$ Day uses the calendar year as its taxable year, as do all of its shareholders. Individual B owns $25\%$ of the Day stock at all times during Year $1.$ B$$s basis in his Day Corporation stock at the beginning of Year $1$ was $$10,000.$ B materially participates in Day$$s business. At the end of Year $1,$ Day is liable for the following:

Third$-$party creditors

$$15,000$

Individual B

$3,000$

Other shareholders

$9,000$

Question

What is B$$s basis in his Day Corporation stock and his basis in the indebtedness he is owed by Day Corporation at the end of Year $1?$

A$.$

Stock, $$0$; indebtedness, $$3,000.$

B$.$

Stock, $$0$; indebtedness, $$0.$

C$.$

Stock, $$15,000$; indebtedness, $$3,000.$

D$.$

None of the answers are correct.