Fact Pattern Happy Inc. is a calendar year corporation. Happy Inc. had accumulated earnings and profits of $100,000 and no current earnings and profits when it distributed a total of $160,000 to its two equal shareholders, Betty and Bob. On the date of the cash distribution, Betty's basis in her Happy Inc. stock was $20,000 and Bob's basis in his Happy Inc. stock was $30,000.
What is Bob's adjusted basis in his EFG Inc. stock after the distribution?
a. 0.
b. $5,000.
c. $15,000.
d. none of the above.