For the 2017 Tax Year, King Corporation, a Calendar-Year S

For the 2017 tax year, King Corporation, a calendar-year S corporation, had an ordinary loss from operating activities of $160,000 and a long-term capital gain from the sale of investment property of $40,000. Jordan is a 40% shareholder in King Corporation and his basis in his stock at the beginning of 2017 was $50,000. On the last day of the 2017 tax year, King Corporation's outstanding debt incurred in 2016 remains $80,000, 25 percent of which ($20,000) is owed to Jordan. What is Jordan's basis in his S corporation stock and debt on January 1, 2018? $\begin{array}{lll}&\text { Basis in Stock }&\text { Basis in Debt }\\\text { a. } & 0 & \$ 6,000 \\\text { b. } & \$ 2,000 & \$ 20,000 \\\text { c. } & \$ 50,000 & \$ 20,000 \\\text { d. } & (\$ 14,000) & \$ 20,000\end{array}$