2. Fox Corp., an S corporation, had an ordinary loss of $36,500 for the year ended December 31, year 2. At January 1, year 2, Duffy owned 50% of Fox’s stock. Duffy held the stock for 40 days in year 2 before selling the entire 50% interest to an unrelated third party. Duffy’s basis for the stock was $10,000. Duffy was a full-time employee of Fox until the stock was sold. Duffy’s share of Fox’s loss was:

a. $0

b. $2,000

c. $10,000

d. $18,250