Suppose at the beginning of 2016, Jamaal's basis in his S corporation stock was $39,000 and that Jamaal has loaned the S corporation $9,880. During 2016, the S corporation reported an $51,200 ordinary business loss and no separately stated items. How much of the ordinary loss is deductible by Jamaal if he owns 50% of the S corporation?

$41,320.

$9,880.

None of the choices are correct.

$48,880.

$39,000.