42 of 75. Hernando is a shareholder in an S corporation. At the beginning of the year, he purchased 1,500 shares of the corporation for $35,000. He then received a Schedule K-1 (Form 1120-S) for the same year reporting his share of the ordinary business income, $10,000. The only other item reported on the Schedule K-1 was a $2,000 cash distribution. What is Hernando's year- end adjusted basis in the corporation? $33,000 $37,000 $43,000 $45,000 Mark for follow up Question 43 of 75. llene is a shareholder in an S corporation. She purchased 200 shares of the corporation at the beginning of the year for $20,000. Her Schedule K-1 (Form 1120-S) for the same year reported ordinary business income of $1,400 in Part III, box 1 and $1,500 of net long-term capital gain in Part III, box 8a. What is llene's year-end adjusted basis in the corporation? $20,000 $21,400 $21,500 $22,900