Problem: Module 7 Textbook Problem 7 Learning Objectives: 7-6 Adjust the tax basis in a partnership Interest 7.7 Apply the basis limitation on the deduction of partnership losses On January 1 Year 1. Ginger, an Individual paid $16,000 for 5 percent of the stock in Root Corp. an corporation. In November Year 1. he loaned $9.000 to Root Corp. in return for a promissory note. Root Corp. generated a 5610.000 operating loss in Year 1. Root Corp, generated $409.000 ordinary business income in Year 2 Required: a. How much of Ginger's share of this income is included in his Year 2 taxable income? b. Compute Ginger's basis in his Root Corp. stock and his Root Corp. note at the end of Year 2 c. How would your answers to parts a and b change if Root Corp.'s ordinary business income was only $221,000? Complete this question by entering your answers in the tabs below. Reg A and B Reqc 3. How much of Ginger's share of this income is included in his Year 2 taxable income? b. Compute Ginger's basis in his Root Corp. stock and his Root Corp. note at the end of Year 2 Amount Taxable incomo Adjusted basis Root Stock Root Note Rande Reqc > Complete this question by entering your answers in the tabs below. Req A and B Reqc How would your answers to parts a and b change if Root Corp.'s ordinary business Income was only $221,000? Amount Taxable income Adjusted basis Root Stock Root Note