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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 $$7,050.$ 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 $$34,300$ 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.

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

$$7,050.$