After reading the facts below, use the dropdown options to calculate basis. Be sure to use the correct ordering rules for calculating basis as an S Corp shareholder Charlie contributed a building with a FMV of $100,000 and a basis of $60,000 in exchange for 100% ownership in JK Corporation, an S Corporation. During its first year, JK Corp. reports an ordinary income of $75,000 and a capital loss of $10,000. JK Corp also makes a $30,000 cash distribution to Charlie at the end of the year. What is Charlie's basis at the end of the year? 1. Beginning Balance 2. Adjustment 1 3. Adjustment 2 4. Adjustment 3 5. Ending Basis