Birch corp., a calendar-year corporation, was formed three years ago by its sole shareholder, james, who has operated it as an s corporation since its inception. last year, james made a direct loan to birch corp. in the amount of $6,600. birch corp. has paid the interest on the loan but has not yet paid any principal. (assume the loan qualifies as debt for tax purposes.) for the year, birch experienced a $34,700 business loss.

a. what amount of the loss clears the tax-basis limitation, and what is james’s basis in his birch corp. stock and birch corp. debt in each of the following alternative scenarios? (leave no answer blank. enter zero if applicable.)
at the beginning of the year, james's basis in his birch corp. stock was $10,300 and his basis in his birch corp. debt was $6,600.

1. alwaysrain irrigation, inc. would like to determine capacity requirements for the next four years. currently, two production lines are in place for making bronze and plastic sprinklers. three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. management has forecast demand for the next four years as follows: both production lines can produce all the different types of nozzles. the bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. the plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. three bronze machines and only one injection molding machine are available. what are the capacity requirements for the next four years? (assume that there is no learning.)