. Both Thu and Tuan own one-half of the stock of Wren, Inc., a C corporation. Each shareholder holds a stock basis of $175,000. Wren has accumulated E & P of $300,000. Wrens taxable income for the current year is $100,000, and it distributes $75,000 to each shareholder. Thus stock basis at the end of the year is:

a. $0.

2. $100,000.
3. $150,000.
4. $175,000.