LO.4, 7 A calendar year S corporation has an ordinary loss of $80,000 and a capital loss of COMMUNI CAT IONS

$20,000. Ms. Muhammad owns 30% of the corporate stock and has a $24,000 basis in her stock. Determine the amounts of the ordinary loss and capital loss, if any, that flow through to Ms. Muhammad. Prepare a tax memo for the files, summarizing your position.