On January 3, Year 4, Taylor and Barr each owned 100 shares of the 200 issued shares of Lan stock. Taylor's basis in Lan shares on that date was $10,000. Taylor sold all of his Lan shares to Pike on January 31, Year 4, and Lan made a valid election to terminate its tax year. Taylor's share of ordinary income from Lan prior to the sale was $2,000. Lan made a cash distribution of $3,000 to Taylor on January 30, Year 4.

What was Taylor's basis in Lan shares for determining gain or loss from the sale to Pike?

Options: $0, $1700, $2500, $2672, $3150, $3750, $4700, $5000, $6140, $9000