please answer and explain why.

3. Identify which of the following statements is false. A) Jade is a shareholder in an S corporation. Her stock basis is $10,000 and her basis in a loan she made to the corporation is $3,000. Jade's share of the corporation's ordinary loss for the current year is $11,000. Ignoring the at-risk and passive activity limitations, Jade can deduct the loss in full. B) A shareholder's S corporation stock basis will increase when the shareholder acts as guarantor on a corporate indebtedness. C) A shareholder's ratable share of the S corporation's ordinary loss reduces the adjusted basis of his/her S corporation stock. Once the basis of the stock is reduced to zero, any loss-passthrough that remains reduces the basis of S corporation debts that are owed to the shareholder. D) Debt basis is restored before stock basis