Diamond Corp has always been an S corp. Diamond is 100% owned by Caitlin. Caitlins adjusted basis in the Diamond Stock is 100,000 on Jan 1 of the current year. During the current year, Diamond distributes XYZ sotck to Caitlin. The XYZ stock has a 50000 FMV and a 35000 adjusted basis on Diamonds books. The XYZ stock has been held as an invesmtment for 4 years by Diamond. Diamond Corp reports 42000 of ordinary income in the current year. What is caitlins basis in the diamond stock at the beginning of next year? a)107000 b)50000 c)92000 d)86000