Joe is one of four general partners in KFK Company, a partnership formed three years ago. The four partners share equally in all income and losses. Joe receives a $40,000 guaranteed payment each year per the partnership agreement. After the first year, as agreed, one of the other partners invested some extra partnership income in securities, which earn interest and dividends. At the beginning of the current tax year, Joe's adjusted basis in KFK was $15,000. He has made no capital contributions or withdrawals during the year. At the end of the tax year, the KFK partnership return reports $30,000 in ordinary business income, $4,000 in portfolio interest, $10,000 in dividends, and $1,500 in charitable contributions. What is Joe's adjusted basis in KFK Company at the end of the current tax year?

a) $22,500 b) $26,000 c) $25,625 d) $10,625