Smile, a calendar year S corporation since 2017, has two shareholders who each own 50 shares of stock, which each shareholder purchased for $5,000. Mr. C, one of the shareholders, loaned Smile $2,000 on June 1, 2017, and $6,000 on May 1, 2018. Smile had $9,000 ordinary income on December 31, 2017. Both shareholders reported their share of the corporation's income on their individual returns for 2017. For 2018, Smile reported an ordinary loss of $6,000. No distributions were made in 2017 or 2018 by the corporation. What is the adjusted basis of Mr. C's stock on December 31, 2018?