Clampett,Inc

question 80

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 $30,000.For 2018,J.D.was allocated $10,000 of ordinary income from Clampett,Inc.and no separately stated items.How much capital gain does J.D.recognize 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.

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Definitions:

Low-Birth Weight

Refers to a birth weight of a newborn that is significantly lower than an average healthy weight, usually less than 2,500 grams (5.5 pounds) at birth.

Increased Risk

A higher likelihood of experiencing a negative outcome or condition compared to a baseline or average likelihood.

Emotion-Focused Coping

A coping strategy that involves reducing stress by managing the emotional response to a problem, rather than confronting the problem itself.

Avoiding Stressor

The act of staying away from or preventing oneself from being exposed to situations that cause stress.