Clampett, Inc. has been an S corporation since its inception. On July 15, 2018, Clampett, Inc. distributed $50,000 to J. D. His basis in his Clampett, Inc. stock on January 1, 2018, was $30,000. For 2018, J. D. was allocated $10,000 of ordinary income from Clampett, Inc. and no separately stated items. How much capital gain does J. D. recognize related to Clampett, Inc. in 2018?
A) $50,000.
B) $10,000.
C) $60,000.
D) $20,000.
E) None of the choices are correct.
Correct Answer:
Verified
Q92: Clampett, Inc. converted to an S corporation
Q93: At the beginning of the year, Clampett,
Q94: At the beginning of the year, Clampett,
Q95: Assume that at the end of 2017,
Q96: Clampett, Inc. converted to an S corporation
Q98: Assume that at the end of 2017,
Q99: Clampett, Inc. has been an S corporation
Q100: Assume that at the end of 2017,
Q105: Jackson is the sole owner of JJJ
Q106: XYZ was formed as a calendar-year S
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents