On January 1, 2018, Laura Wang contributed $30,000 cash in exchange for 30 shares of stock in Suki Inc., an S corporation. On May 12, Laura loaned $8,500 to Suki in exchange for a 5-year interest-bearing note. Laura's pro rata share of Suki's 2018 ordinary business loss was $34,100, and she received no cash distributions during the year. Assume the excess business loss limitation does not apply.

1. Calculate her basis at the end of the year.
2. How much of the S Corporations loss can she deduct in 2018?