Fulmer, an individual, owns 50% of Roadhouse, an S corporation. At the beginning of the year, Fulmer's basis in Roadhouse was $50,000. Roadhouse reported the following items from operations during the current year:

Ordinary loss $20,000

Municipal interest income 4,000

Section 1231 gain 6,000

Dividend income 8,000

What was Fulmer's basis in Roadhouse at year-end?

$30,000.

$40,000.

$48,000.

$49,000.