William and Joan form an S corporation with William owning 30 percent of the stock and Joan the remaining 70 percent. Joan contributed $80,000 cash and services valued at $4,000. William contributed $6,000 cash and property valued at $30,000 that has a basis of $20,000. At the end of the year, the S corporation reports the following:

Ordinary income (before salary expense) ............................................$90,000
Tax-exempt bond interest ...........................................................................2,000
Capital loss ....................................................................................................4,000
Salary to Joan ..............................................................................................30,000
Cash distribution to Joan ...........................................................................25,000
New 3-year note on land ...........................................................................15,000
What is Williams’s basis in his S corporation interest at year-end?
a. $43,400
b. $45,800
c. $47,900
d. $45,900