Sam owns stock in an S-Corporation. Sam's share of the corporation's loss for the year is $25,000. He receives a k-1 which contains this amount. His adjusted basis in the corporations stock is $10,000. In addition, Sam has a loan outstanding to the corporation in the amount of $13,000.

a) what amount, if any, is Sam entitled to deduct with respect to the loss?

b)If any amount of the loss cannot be deducted this year, what happens to it?

c) What is Sam's stock basis and debt basis at the end of the year?

d) If Sam's share of the S Corporation profits next year is $19,000, what are the tax consequences to Sam?