ADAM OWNS 100% OF AN S CORPORATION AT THE BEGINNINGof the year 20X1 . The basis of his stock is $10,000. He has made 2 loans to the corporation -a 5year loan for $10,000 and a 6 year loan for $15,000. The S Corp has a 20X1 taxable loss in the amount of $20,000. In 20X2 the S Corp has taxable income of $5,000. What is the basis of the loans at December 31, 20X2?

A) 5 year loan $6,000 ; 6 year loan ; $9,000

B) 5 year loan; $7,500: 6 year loan: $12,500

C) 5 year loan: $8,000: 6 year loan $12,000

D) 5 year loan; $9,000 ; 6 year loan $9,000