82 Clampett, Inc

question 7

Multiple Choice

82. Clampett, Inc. has been an S corporation since its inception. On July 15, 2017, Clampett, Inc. distributed $50,000 to J. D. His basis in his Clampett, Inc. stock on January 1, 2017, was $30,000. For 2017, 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 2017?

• A) $40,000.
• B) $30,000.
• C) $20,000.
• D) $10,000.
• E) None of these.

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