At the Beginning of the Year,Clampett,Inc

question 41

Multiple Choice

At the beginning of the year,Clampett,Inc.had $100,000 in its AAA,$60,000 of earnings and profits from prior C corporation years.During the year,Clampett,Inc.earned $50,000 of ordinary income and paid $200,000 in distributions to its shareholders.Assume that J.D.owns 25% of Clampett,Inc.,his basis in Clampett,Inc.at the beginning of the year is $10,000,and his share of the distribution was $50,000.How much income does J.D.recognize this year from these transactions?

• A)$0.
• B)$10,000.
• C)$17,500.
• D)$40,000.
• E)None of the choices are correct.

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Definitions:

Genogram

A map of an individual’s family tree that may include the family history of illnesses, mental disorders, substance use, expectations, relationships, cultural issues, and other concerns relevant to counseling. Special symbols may be used to assist in creating this map. It is a type of record and personal document.

Family History

The compilation of records or data regarding the lineage, health, and personal characteristics of one's relatives.

Mental Disorders

Health conditions characterized by alterations in thinking, mood, or behavior associated with distress and/or impaired functioning.

Substance Use

The ingestion of drugs or alcohol, which may vary in frequency and intensity from mild to severe use.