Preach Corp., an accrual basis, calendar-year S corporation, has been an S corporation since its inception. At the beginning of the current year, Silver owned 50% of the 100 issued shares of Preach stock, and had a $3,000 tax basis in the Preach stock. During the current year, Preach had $200,000 in net business income and $4,000 in Moss County municipal bond interest income. Preach made no distributions to its shareholders. What was Silver's tax basis in Preach stock at year end?

A) $102,000 B) $103,000 C) $104,000 D) $105,000 E) $107,000