Jeff owns 100% of an S corporation's stock with a basis in his stock of $60,000 on January 1 2009. In addition, the S corporation owes Jeff $20,000 on January 1, 2009. The debt has a basis of $20,000 on January 1, 2009, and is evidenced by a note. The S corporation reports an ordinary loss of $90,000 for 2009. In 2010, it reports ordinary income of $15,000.
a. Calculate Jeff's stock and debt basis at the end of 2009 and 2010.