H Company, a Calendar Year S Corporation Incorporated in 2007

H Company, a calendar year S corporation incorporated in 2007, showed the following taxable income and distributions: $$\begin{array}{l}&\text { Taxable Income from Earnings }&\text { Distributions }\\2007 & \$ 50,000&\$ 35,000 \\2008 & 55,000&35,000 \\2009 & 60,000&25,000 \\2010 & 60,000&35,000 \\2011 & 40,000&50,000 \\\text { Total } & \$ 265,000 & \$ 180,000\end{array}$$ The company has had a single shareholder since January 1, 2007, and his basis in the stock on that date was $0.The shareholder has no receivables from the corporation.Based on the figures above, how has the shareholder's basis changed?

A) Decreased $180,000
B) Increased $265,000
C) Increased $75,000
D) Increased $85,000