1. calculate Z's adjusted gross income.

2. calculate Z's basis in her S Stock at the end of the year.

A calendar-year S Corp has the following information for the current taxable year: Sales 350,000 Cost of Goods Sold 120,000 Long-term Capital 12,000 Gain Distribution to 50,000 Owners Salary to Z 35,000 Charitable 8,000 Contribution Operating Expenses 40,000 Interest Income 15,000 Z is a 40% owner with a $100,000 basis in her stock at the beginning of the tax year. No corporate debt is owed to her. Z materially participates in the operations of S Corp. Z also has a $55,000 salary from another job