Evan is one of two general partners in ZVZ Partnership. They share equally in income and losses. When ZVZ started four years ago, Evan contributed $3,500 cash. ZVZ had $4,000 ordinary business income in the first tax year and $8,000 in the second. Evan made no withdrawals in the first year, and he withdrew $3,000 in the second. Also, in the second tax year, ZVZ borrowed $3,000 from the bank, and both partners signed the note. Evan made no capital contributions in the second year. What is Evan's adjusted basis in ZVZ at the end of the second tax year?

a) $3,500 b) $8,000 c) $5,500 d) $7,500