Jonathan is an S corporation shareholder. Jonathan's basis in his S corp stock at the beginning of the year is $300,000. During the year, Jonathan receives salary and bonus of $130,000 from the S corporation and pass through ordinary income of $100,000. Jonathan also takes a $40,000 cash distribution from the S corporation.

1. What is the basis of Jonathan's S corporation stock at the end of the year after the events above?

2. What amount of Jonathan's income above is subject to federal employment taxes (social security and Medicare)?