(Answered)-Unsure how to figure loan basis. Any help would be greatly - (2025 Updated Original AI-Free Solution

Question

1. Unsure how to figure loan basis. Any help would be greatly appreciated.
3. Tim?has?a?zero?basis?in?his?S?Corporation?stock.?A?loan?he?has?made?to?his?S?Corporation?has?a?face?value?of?$10,000,?and?its?current?basis?is?$3,000?(having?previously?been?reduced?by?$7,000?of?losses?that?he?used).?Tim?s?share?of?the?corporation?s?current?net?income?is?$4,000.??
4. a) What?is?his?stock?basis?
5. b)?What?is?his?loan?basis?
6. c)?Corporation?pays?$10,000?to?Tim?before?he?increases?his?basis.??How?would?this?payment?be?treated?and?what?would?be?his?loan?basis.