Suppose That at the Beginning of 2020 Jamaal's Basis in His

Suppose that at the beginning of 2020 Jamaal's basis in his S corporation stock is $1,700 and he has a $10,700 debt basis associated with a $10,700 loan he made to the S corporation. In 2020, Jamaal's share of S corporation income is $4,700, and he received a $7,700 distribution from the S corporation. What is Jamaal's stock and debt basis after these transactions?

A) $0 stock basis; $9,400 debt basis
B) $0 stock basis; $10,700 debt basis
C) $6,400 stock basis; $10,700 debt basis
D) $6,400 stock basis; $3,000 debt basis
E) None of the choices are correct.