Problem 11-57 (LO 11-4) (Static) [The following information applies to the questions displayed below.] Birch Corporation, a calendar-year corporation, was formed three years ago by its sole shareholder, James, who has operated it as an S corporation since its inception. Last year, James made a direct loan to Birch Corporation in the amount of $5,000. Birch Corporation has paid the interest on the loan but has not yet paid any principal. (Assume the loan qualifies as debt for tax purposes.) For the year, Birch experienced a $25,000 business loss. What amount of the loss clears the tax-basis limitation, and what is James's basis in his Birch Corporation stock and Birch Corporation debt in each of the following alternative scenarios? Note: Leave no answer blank. Enter zero if applicable. roblem 11-57 Part b (Static) At the beginning of the year, James's basis in his Birch Corporation stock was $8,000 and his basis in his Birch Corporation debt as $5,000. c. At the beginning of the year, James's basis in his Birch Corporation stock was $0 and his basis in his Birch Corporation debt was $5,000