On January 1, Year 1, Carrot, an individual, paid $20,900 for 5 percent of the stock in Root Corp , an s corporation In November, he loaned $8,200 to Root Corp in return for a promissory note Root Corp generated a $892,000 operating loss in Year 1 Required a How much of his share of the loss can Carrot deduct on his Year 1 return b Compute Carrot's basis in his Root Corp stock and his Root Corp note at the end of Year 1 X Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below Required A Required B Compute Carrot's basis in his Root Corp stock and his Root Corp note at the end of Year 1 Root Stock Root Note Adjusted basis $ 0 15,500

Question

On January 1, Year 1, Carrot, an individual, paid $20,900 for 5 percent of the stock in Root Corp , an s corporation  In November, he loaned $8,200 to Root Corp  in return for a promissory note  Root Corp  generated a $892,000 operating loss in Year 1  Required  a  How much of his share of the loss can Carrot deduct on his Year 1 return  b  Compute Carrot's basis in his Root Corp  stock and his Root Corp  note at the end of Year 1  X Answer is complete but not entirely correct  Complete this question by entering your answers in the tabs below  Required A Required B Compute Carrot's basis in his Root Corp  stock and his Root Corp  note at the end of Year 1  Root Stock Root Note Adjusted basis $ 0 15,500

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On January 1, Year 1, Carrot, an individual, paid $20,900 for 5 percent of the stock in Root Corp., an s corporation. In November, he

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