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Cactus Corporation, an S Corporation, had accumulated earnings and profits of $100,000 at he beginning of 2008. Tex and Shirley each own 50% of the

Cactus Corporation, an S Corporation, had accumulated earnings and profits of $100,000 at he beginning of 2008. Tex and Shirley each own 50% of the stock and have a basis in their stock of $50,000 on January 1, 2008. Cactus does not make any distributions during 2008, but had $200,000 of ordinary income. In 2009, ordinary income was $100,000 and distributions were $100,000. What is Texs basis at January 1, 2010? a.$100,000 b.$150,000 c.$200,000 d.$250,000

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