Problem: Module 7 Textbook Problem 6 Learning Objectives: - 7-6 Adjust the tax basis in a partnership interest - 7-7 Apply the basis limitation on the deduction of partnership losses On January 1, Year 1, Carrot, an individual, paid $22,600 for 5 percent of the stock in Root Corp., an S corporation. In November, he loaned $8,350 to Root Corp. in return for a promissory note. Root Corp. generated a $908,000 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. Complete this question by entering your answers in the tabs below. How much of his share of the loss can Carrot deduct on his Year 1 return