Manny is a shareholder in an S corporation. At the beginning of the year, he purchased 1,000 shares of the corporation for $30,000. He then received a Schedule K-1 (Form 1120-S) for the same year reporting his share of the ordinary business income, $5,000. The only other item reported on the Schedule K-1 was a $1,000 cash distribution. What is Manny's year end adjusted basis in the corporation?

1) $29,000

2) $31,000

3) $34,000

4) $35,000