Orange, Inc., a calendar year corporation, elects S corporation status for $2023.$ The company generated a $$132,800$ NOL in $2022$ and another NOL of $$79,680$ 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 $$10,624$ 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 $$132,800$

does not carry

forward into the S corporation year. Therefore, the deductible loss in $2023$ by Pete is $fill in the blank $2$

$,$ with a $fill in the blank $3$

carryover.

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