6 Problem: Module 7 Textbook Problem 6 Learning Objectives: 7-6 Adjust the tax basis in a partnership interest 7-7 Apply the basis limitation on the deduction of partnership losses 1 points Print On January 1, Year 1, Carrot, an individual, paid $17,300 for 5 percent of the stock in Root Corp., an S corporation. In November, he loaned $8,550 to Root Corp. in return for a promissory note. Root Corp. generated a $956,000 operating loss in Year 1. Required: a. How much of his share of the loss can Carrot deduct on his Year 1 return? b. Compute Carrot's basis in his Root Corp. stock and his Root Corp. note at the end of Year 1. Complete this question by entering your answers in the tabs below. Required A Required B How much of his share of the loss can Carrot deduct on his Year 1 return? Deduction Module 7 Textbook Problems Saved Help Save & Exit Submit Check my work 6 Problem: Module 7 Textbook Problem 6 Learning Objectives: 1 points 7-6 Adjust the tax basis in a partnership interest 7-7 Apply the basis limitation on the deduction of partnership losses Print On January 1, Year 1, Carrot, an individual, paid $17,300 for 5 percent of the stock in Root Corp., an S corporation. In November, he loaned $8,550 to Root Corp. in return for a promissory note. Root Corp. generated a $956,000 operating loss in Year 1. Required: a. How much of his share of the loss can Carrot deduct on his Year 1 return? b. Compute Carrot's basis in his Root Corp. stock and his Root Corp. note at the end of Year 1. Complete this question by entering your answers in the tabs below. Required A Required B Compute Carrot's basis in his Root Corp. stock and his Root Corp. note at the end of Year 1. Root Stock Root Note Adjusted basis