Laurie Is a 70% Shareholder in Martin Ltd

Laurie is a 70% shareholder in Martin Ltd.,a calendar year S corporation.As of January 1,2012,Laurie's basis in her stock investment was $400,000.During 2012,she made an additional capital contribution to Martin of $90,000 and also loaned the corporation $80,000.During 2012,Martin Ltd.had an operating loss of $900,000.One of the results of these transactions as to 2012 is that:

A) Laurie can recognize a loss of $400,000.
B) Laurie can recognize a loss of $490,000.
C) Laurie can recognize a loss of $630,000.
D) As of January 1, 2013, Laurie's basis in her stock is a negative $60,000.
E) None of the above.