1. Coy and Matt are equal shareholders in the Matcoy S Corporation. Each shareholder has a basis in his shares of $30,000 at the end of the current year, prior to any distribution. On December 31 they each receive an operating distribution. Coy receives $11,200 cash. Matt receives $3,340 cash and a parcel of land with a $7,860 fair market value and a $4,400 basis to the S corporation. Matcoy has no debt or hot assets. What is Matts basis in the stock following the distribution (Be careful of the difference in the distribution rules for a partnership versus an S corporation) ?