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Suppose at the beginning of 2015, Jamaal's basis in his S corporation stock is $2,500, and he has a $11,500 debt basis associated with a

Suppose at the beginning of 2015, Jamaal's basis in his S corporation stock is $2,500, and he has a $11,500 debt basis associated with a $11,500 loan he made to the S corporation. In 2015, Jamaal's share of S corporation income is $5,500, and he received a $8,500 distribution from the S corporation. What is Jamaal's stock and debt basis after these transactions?

a. $0.0 stock basis; $11,000 debt basis

b. $0 stock basis; $11,500 debt basis

c. $8,000 stock basis; $11,500 debt basis

d. $8,000 stock basis; $3,000 debt basis

e. None of these

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