Jeff, a 52% owner of an S corporation, has a stock basis of zero at the beginning of the year. Jeff's basis in a $10,000 loan made to the corporation and evidenced by a corporate note has been reduced to zero by pass-through losses. During the year, his net share of the corporate taxable income is $8,000 and there is no cash distribution. The corporation repays the $10,000 loan principal to Jeff. a. Complete the statement below that outlines the tax effects for Jeff. The repayment of the loan results in a capital gain of assume that the facts above except there was no corporate note, onlyan account payable. if no corporate note exists, Jeff reports ordinary income of