Rosa contributes $50,000 to a business entity in exchange for a 10% ownership interest. Rosa materially participates in the entity. The business entity incurs a loss of $900,000 for the current tax year and holds liabilities at the end of the year of $700,000. Of this amount, $150,000 is recourse debt and $550,000 is nonrecourse debt.

If an amount is zero, enter "0".

a. Assume that the business entity is a partnership.

How much of the entity loss can Rosa deduct on her the current tax year income tax return? $________

What is her basis for the partnership interest at the end of the current tax year? $__________

b. Assume that the business entity is a C corporation.

How much of the entity loss can Rosa deduct on her the current tax year income tax return? $_________

What is her basis for the stock at the end of the current tax year? $________