Please help:

If Orange Corp. distributed $10,000 to Nicholas on March 1, 2020, what is Nicholas' stock basis at the end of 2020 (after all 2020 basis adjustments are made)?

**(I answered this for 2 times, both $8,500 and $22,000 are not correct.)

Nicholas owns 60% of the shares of Orange Corp. (an S corporation with no accumulated E&P). Nicholas purchased his shares at the beginning of 2020 for $1,000. Orange Corp. reported the following during 2020: Ordinary business income: $40,000 Separately stated income items: $3,000 Separately stated loss items: $8,000 In addition, Orange Corp. paid off corporate debt (nonrecourse) of $10,000 in 2020