Two years ago, Susan Smith and Jane Jones formed an S$-$corporation, in which they each owned a $50\%$ interest. Susan

contributed $$50,000$ in cash, while Jane contributed $$30,000$ in cash, as well as $$20,000$ of appreciated securities$.$ At the

time of the transfer to the business, Jane's basis in those securities was $$12,000.$ After the first year, the S$-$corporation

generated $$40,000$ of profit. Each shareholder received a $$16,000$ cash distribution at that time. The business then suffered

a loss of $$6,000$ in the second year of operation. Because of the firm's poor cash position, each shareholder received a

nominal cash distribution of $$1,000$ at the end of the second year. How much was Jane's basis in the S$-$Corporation after the

second year?

A$.$ $$29,000$

B$.$ $$42,000$

C$.$ $$50,000$

D$.$ $$51,000$