Dion, a shareholder of Meadow Brook Corporation, an S corporation, owned 20% of the stock for 292 days and 25% of the stock for the remaining 73 days in the year. Her stock basis at the beginning of the year was $32,000 and she purchased an additional $9,000 of stock this year. Given the amount of income and deductions listed below, compute Dion’s share of each item.

Ordinary income                                                                $80,000

Tax-exempt interest income                                           3,000

Salary paid to Dion                                                            (52,000)

Charitable contributions                                                  (6,000)

Dividends received                                                             5,000

Short-term capital loss                                                    (6,000)

Refund of prior state income taxes                                     5,000

LTCL                                                                                     ( 7,000)

LTCG                                                                                     14,000

a. What are Dion’s shares of ordinary income and separately stated items for the year?

b. What is Dion’s adjusted basis in her S stock at year-end?