Sarah is a shareholder in an S Corporation. This is the third year in which she has been a shareholder. She purchased her stock (1,000 shares for $15.00 per share). Sarah's basis at the end of year two was $17,500. This year, Sarah received a distribution of $10,000. The corporation suffered a loss this year; Sarah's share of the ordinary loss is $9,500. What is Sarah's basis in the corporation at the end of the year?
a) $17,500
b) $ 7,500
c) $ 8,000
d)$ 0