Both Thu and Tuan own one-half of the stock of Wren, Inc., a C corporation. Each shareholder holds a stock basis of $175,000. Wren has accumulated E & P of $300,000. Wren’s taxable income for the current year is $100,000, and it distributes $75,000 to each shareholder. Thu’s stock basis at the end of the year is:

a. $0.
b. $100,000.
c. $150,000.
d. $175,000.