Rap, inc., was organized in january 2017 and immediately made an s election. rap, inc.'s stock is entirely owned by howard, who contributed $40,000 to start the business. rap reported the following results for the 2017 year: ordinary income$36,000short-term capital loss4,000charitable contributions1,000tax-exempt income1,000sec. 179 deduction10,000on april 12, 2017, howard received a $30,000 cash distribution from the corporation. what is the adjusted basis of his stock on january 1, 2018?