Problem 12-53 (Algorithmic) (LO. 1, 6, 8, 9, 11) Orange, Inc., a calendar year corporation in Clemson, South Carolina, elects S corporation status for 2017. The company generated a $291,200 NOL in 2016 and another NOL of $174,720 in 2017. Orange recorded no other transactions for the year. At all times in 2016 and 2017, the stock of the corporation is owned by the same four shareholders, each owning 25% of the stock. Pete, one of the shareholders, holds a $23,296 basis in the Orange stock at the beginning of 2017. Complete the statement below that outlines the Federal income tax issues that Pete faces. corporation year. The deductible loss by Pete is The 2016 C corporation NOL of $74,000 does not carry forward into the 0 x , with a $ 0 X carryover. Feedback Check My Work One major advantage of an S election is the ability to pass through any net operating loss of the corporation directly to the shareholders shareholder can deduct an NOL for the year in which the S corporation's tax year ends. The corporation is not entitled to any deduction f