1. Henry is the tax accountant for XJM Inc., an S corporation. He has completed XJM's Form 1120-S return for the current tax year. XJM has net business income (ordinary income) of $60,000 on the completed return. Henry has just received these additional information items: $2,000 charitable contributions, $3,000 portfolio interest income, $5,000 dividend income, and $3,000 business loan interest. When Henry updates the return with the new information, what is the updated amount for net business income (ordinary income) for XJM Inc.? 

2. John is the owner of S corporation ABS Inc. At the beginning of the tax year, John's adjusted basis in ABS was $20,000. During the year, the corporation borrowed $25,000 from a bank for equipment purchases but John was not required to guarantee the loan. ABS has net business income of $10,000 for the tax year. What is John's adjusted basis in ABS Inc. at the end of the tax year?

3. Jay received Schedule K-1 (Form 1120-S) from S corporation FRD Inc. for the current tax year. It shows the following: $5,000 ordinary business income, $2,000 ordinary dividends, $500 charitable contributions, and a $1,000 distribution affecting his basis. Jay's adjusted basis at the beginning of the tax year was $10,000 and he did nothing else during the year to affect his basis. What is Jay's adjusted basis in FRD Inc. at the end of the tax year?