On January 1, Year 1. Carrot, an individual, paid $24,000 for 5 percent of the stock in Root Corp., an S corporation. In November, he loaned $12.500 to Root Corp. in return for a promissory note. Root Corp. generated a $896,000 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