33. Charles owns a 25 percent interest in Cal Corporation, an S corporation.

The corporation has run into some difficulties recently and Charles lent it

$10,000. At the beginning of the year, Charles’s basis in his stock was

$16,000.

a. What is Charles’s basis in his stock and debt at the end of the year if the corporation reports losses of $60,000?

b. What is Charles’s basis in his stock and debt at the end of the year if the corporation reports losses of $90,000?

c. What is Charles’s basis in his stock and debt at the end of the year if the corporation reports losses of $120,000?