Felicity Inc. is a calendar-year S corporation with two shareholders who each own 50 shares of stock. All shareholders purchased their stock for $10,000. Mr. D, one of the shareholders, made loans to the corporation of $7,000 and $6,000 on August 1, 2015, and June 15, 2016, respectively. Mr. D also guaranteed Felicity's $20,000 bank loan of $20,000. Felicity Inc. had $15,000 ordinary income on December 31, 2015. Both shareholders reported their share of the corporation's income on their individual returns for 2015. For 2016, Felicity Inc. reported an ordinary loss of $5,000. No distributions were made in 2015 or 2016 by the corporation. What is the adjusted basis of Mr. D's stock on December 31, 2016? If an item does not contribute to basis, please explain.