Upon formation of Stringcheez Corporation, an S corporation, Shareholder Z contributed $300 in exchange for 30 shares. By end of Year 1, Stringcheezs financial results reflect $500 of taxable income. During Year 1, Stringcheez takes out a loan for $200, which Z provides a personal guarantee. Stringcheez distributes $200 to shareholder Z in December of Year 1. Included in 2 the taxable income calculated is non-cash depreciation expenses of $120. At the end of Year 1, what is Zs basis in her Stringcheez shares based on these activities.

a. $480 b. $800 c. $920 d. $600