M owns 40% of an S corporation. She has basis in the S corporation stock of $12,000 and in a note receivable from the S corporation of $8,000. Compute the basis of the stock and the note and the amount of the ordinary loss and income that M must report in 2021 and 2022

a. The S corporation has a net operating loss of $45,000 in 2021.

b. The S corporation has net operating income of $16,000 in 2022 and made a distribution of $10,000.