Shari is the sole shareholder of Swift, and S corporation. Sharis adjusted basis in Swift stok is $60,000 at the beginning of the year. During the year, Swift reports the following income items:

Ordinary income $30,000

Tax-exempt income 5,000

Capital gains 10,000

In addition, Swift makes a nontaxable distribution to Sandy of $20,000 during the year. What is Sharis adjusted basis in the Swift stock at the end of the year?

A. $60,000

B. $70,000

C. $80,000

D. $85,000

Explanation is needed!