In Year 1, Lisa acquired 100% of the stock of Computers, Inc., for $25,000 cash. Computers incurred a loss of $7,800 for Year 1. On January 1, Year 2, Computers properly elected S corporation status. Its net income for Year 2 was $10,000. A dividend of $2,500 was declared and paid in Year 2. What is Lisa's basis in Computers as of December 31, Year 2? A. $35,000 B. $25,500 C. $25,000 D. $32,500