Laurie is a 70% shareholder in Martin Ltd. a calendar year S corporation. As of

Laurie is a 70% shareholder in Martin Ltd. a calendar year S corporation. As of January 1 2011 Laurie%u2019s basis in her stock investment was $400000.
During 2011 she made an additional capital contribution to Martin of $90000 and also loaned the corporation $80000. During 2011 Martin Ltd. had an
operating loss of $900000. One of the results of these transactions as to 2011 is that:
Laurie can recognize a loss of $400000. Laurie can recognize a loss of $490000. Laurie can recognize a loss of $570000. As of January 1 2012 Laurie%u2019s basis in her stock is a negative $60000. None of the above.