Hernando is a shaeholder in a S corporation. At the beginning of the year he purchased 1,500 share of the corporation for $35000 He then received a Schedule K-1 (Form 1120-S) for the same year reporting of the ordinary business income of $10,000. The only other item reported on the Schedule K-1 was a $2000 cash distrubtion. What is Hernando's year end adjusted basis in the corporation?