Problem: Module 7 Textbook Problem 6 Learning Objectives: - 7-6 Adjust the tax basis in o partnership interest - 7-7 Apply the basis limitation on the deduction of partnership losses On January 1. Year 1, Carrot, an individual, paid $17,500 for 5 percent of the stock in Root Corp, an 5 corporation, In November, he loaned $8,900 to Root Corp. in return for a promissory note. Root Corp. generated a $860,000 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. Compute Carrot's basis in his Root Corp. stock and his Root Corp. note at the end of Year 1