Assume That at the End of 2017,Clampett,Inc

Assume that at the end of 2017,Clampett,Inc.(an S corporation) distributes long-term capital gain property (fair market value of $40,000,basis of $25,000) to each of its four equal shareholders (aggregate distribution of $160,000) .At the time of the distribution,Clampett,Inc.has no corporate E&P and J.D.has a basis of $15,000 in his Clampett,Inc.stock.How much income does J.D.recognize as a result of the distribution?

A) $0.
B) $15,000.
C) $25,000.
D) $40,000.
E) None of the choices are correct.