Problem $10-29($Algo$)[$LO $10-6,10-7]$

On January $1,2023,$ Leo paid $$25,500$ for $5$ percent of the stock in BLS$,$ an S corporation. In November, he loaned $$8,300$ to BLS in return for a promissory note. BLS generated a $$816,000$ operating loss in $2023.$

Required:

How much of his share of the loss can Leo deduct on his $2023$ return? Assume the excess business loss limitation does not apply.

Compute Leo$$s basis in his BLS stock and his BLS note at the end of $2023.$