A calendar year business reports the following information as of the end of 2020 and 2021:

	2020	2021
Accounts Payable to Suppliers	$10,000	$11,000
Note Payable to City Bank	$40,000	$37,000
Note Payable to H	$12,000	$10,000
Cash distributions to owners		$20,000
Net Ordinary Income	$15,000	$15,000

H, a 30% owner, had a basis in the business at the end of 2019 of $9,000. Calculate Hs basis in his ownership interest at the end of 2021 assuming the business is one of the following.

1. A partnership.
2. An S corporation.