Clampett,Inc

question 109

Multiple Choice

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 $45,000.For 2018,J.D.was allocated $10,000 of ordinary income from Clampett,Inc.and no separately stated items.What is J.D.'s basis in his Clampett,Inc.stock after all transactions in 2018?

• A) $40,000.
• B) $30,000.
• C) $20,000.
• D) $5,000.
• E) None of the choices are correct.

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