LOIS ANN OWNS 100% OF NEW INC AN S CORPORATION. BASIS OF STOCK IS 15,000 AT JANUARY 1, 2011. NEW INC REPORTS

TAXABLE INCOME 10,000

INTEREST INCOME 1000

NONDEDUCTIBLE PORTION OF MEALS AND ENTERTAINMENT 4000

CHARITABLE CONTRIBUTION 2000

CASH DISTRIBUTION FROM NEW INC TO LOIS ANN 3000

WHAT IS BASIS AS OF DECEMBER 31, 2011

10,000

11,000

17,000

25,000