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 $175,000. Wren has accumulated E & P of $300,000. Wren's taxable income for the current year is $100,000, and it distributes $75,000 to each shareholder. Barb's stock basis at the end of the year is:

A) $0.
B) $100,000.
C) $150,000.
D) $175,000.
E) None of the above.