Clampett, Incorporated (an S corporation)previously operated as a C corporation. Under general rules, distributions from Clampett, Incorporated, are deemed to be paid in the following order:

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Distributions from an S corporation that was previously a C corporation are generally paid in the order of the Accumulated Adjustments Account (AAA), then prior C corporation earnings and profits, and finally the shareholder's remaining stock basis.

Clampett, Incorporated (An S Corporation)previously Operated as a C Corporation