On January 1, 2018, Leo paid $22,900 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $10,850 to BLS in return for a promissory note. BLS generated a $764,000 operating loss in 2018. a. How much of his share of the loss can Leo deduct on his 2018 return? Assume the excess business loss limitation does not apply. b. Compute Leo's basis in his BLS stock and his BLS note at the end of 2018. Complete this question by entering your answers in the tabs below. Required A Required B How much of his share of the loss can Leo deduct on his 2018 return? Assume the excess business loss limitation does not apply. Deduction Required Required B >