Barb and Chuck Each Own One-Half of the Stock of Wren

Multiple Choice

Barb and Chuck each own one-half of the stock of Wren, Inc., a C corporation. Each shareholder has a stock basis of $125,000. Wren has accumulated E & P of $200,000. Wren's taxable income for the current year is $90,000, and it distributes $60,000 to each shareholder. Barb's stock basis at the end of the year is:

A) $0.
B) $65,000.
C) $110,000.
D) $125,000.
E) None of the above.