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.What is the amount of income J.D.recognizes related to Clampett,Inc.in 2018?
A) $60,000.
B) $50,000.
C) $20,000.
D) $10,000.
E) None of the choices are correct.
Correct Answer:
Verified
Q43: S corporation distributions of cash are not
Q48: S corporations are required to file Form
Q56: Which of the following is a requirement
Q56: If Annie and Andy (each a 30%
Q59: J.D.formed Clampett,Inc.as a C corporation (calendar tax
Q62: Which of the following is not an
Q63: Which of the following is the correct
Q64: On March 15,2017,J.D.sold his Clampett,Inc.(an S corporation)shares
Q65: Suppose at the beginning of 2017,Jamaal's basis
Q66: Suppose at the beginning of 2017,Jamaal's basis
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