Kasper owns all the shares of Ocean City, an S Corp. She actively runs the business, and the corporation has no debt to anyone except Kasper. Her adjusted basis is $100,000. She has also loaned $50,000 to Ocean City recorded by a note.

A:Ocean City has nonseparately stated loss for year 1 of $130,000. How much can Kasper deduct.

B:What is Kaspers basis in the stock and the debt at the end of year 1?

C: In year 2, Ocean City has a nonseparately stated income of $15,000. What is Kaspers adjusted basis in the stock and the debt at the end of year 2.