1. Hank is a 30% shareholder of an Scorporation which has $8,200 of Subchapter Sincome during the year. In addition, the corporation shows the following Schedule K items: $ 9,000 2,000 Dividends Tax-exempt interest Recovery of prior property taxes Long-term capital gain Charitable contributions 3,000 16,000 7,000 S 1231 losses 3,000 Capital losses 5,000 Each shareholder reports a pro rata portion of the stated amount and the Schedule K items based on the ownership percentage and the number of days the stock was held. The DassRenately computed income of $8,200 passes through the corporate veil to each shareholder. Thus, Hank will show 30%, or $2,460 ordinary income on his Form 1040 In a similar fashion, each of the Schedule Kitems will flow through to the shareholders. Hank will report 30% of each of the Schedule K items, as follows: $2,700 600 Dividends received Tax-exempt interest income Recovery of prior property taxes Long-term capital gain Charitable contributions 900 4,800 2,100 5 1231 losses 900 Capital losses 1,500 All items retain their character as they pass through to each shareholder. For example, the tax-exempt interest income at the corporate level will be tax-exempt income at the shareholder level. Assuming that Hank's stock basis was $4,250 at the beginning of the year, what is his stock basis at the end of the year