On January 1, Year 1, Carrot, an individual, paid $20,600 for 5 percent of the stock in Root Corp., an S corporation. In November, he loaned $12,100 to Root Corp. in return for a promissory note. Root Corp. generated a $980,000 operating loss in Year 1. How much of his share of the loss can Carrot deduct on his Year 1 return?