Monte and Allie each own 50% of Raider Corporation, an S corporation. Both individuals actively participate in Raiders business. On January 1, Monte and Allie have adjusted bases for their Raider stock of $80,000 and $90,000 respectively. During the current year, Raider reports the following results:

Ordinary loss		$175,000
Tax-exempt interest income		20,000
Long-term capital loss		32,000

Raiders balance sheet at year-end shows the following liabilities: accounts payable, $90,000; mortgage payable, $30,000; and note payable to Allie, $10,000.

a. What income and deductions will Monte and Allie report from Raiders current year activities?

b. What is Montes stock basis on December 31?

c. What are Allies stock basis and debt basis on December 31?

d. What loss carryovers are available for Monte and Allie?

e. Explain how the use of the losses in Part a would change if instead Raider were a partnership and Monte and Allie were partners who shared profits, losses and liabilities equally.