Clampett, Inc

question 132

Multiple Choice

Clampett, Inc. has been an S corporation since its inception. On July 15, 2019, Clampett, Inc. distributed $50,000 to J. D. His basis in his Clampett, Inc.
Stock on January 1, 2019, was $30,000. For 2019, 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 2019?

• A) $60,000.
• B) $50,000.
• C) $20,000.
• D) $10,000.
• E) None of the choices are correct.

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Definitions:

Flexible Working Hours

Employment arrangements that allow employees to vary their working hours and work locations, offering greater work-life balance.

Reduce Stress

The process of taking steps to alleviate or manage tension and anxiety.

Autonomy

The ability or right of individuals or entities to govern themselves or make their own decisions without external control.

Physiological Needs

Basic human requirements for survival and physical well-being, such as food, water, shelter, and sleep, as identified in Maslow's hierarchy of needs.