Orange, Inc., a calendar year corporation, elects S corporation status for $2023.$ The company generated a $$110,800$NOL in $2022$ and

another NOL of $$66,480$ in $2023.$ Orange recorded no other transactions for the year. At all times in $2022$ and $2023,$ the stock of the

corporation is owned by the same four shareholders, each owning $25\%$ of the stock. Pete, one of the shareholders, holds a $$8,864$ basis in

the Orange stock at the beginning of $2023.$

Complete the statement below that outlines the Federal income tax issues that Pete faces.

The $2022$ C corporation NOL of $)$

$$ forward into the $S$ corporation year. Therefore, the deductible loss in

$2023$ by Pete is $

$,$ with a $

carryover.