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Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc., distributed $45,500 to J.D. His basis in his Clampett, Inc., stock on January 1, 2020, was $37,500. For 2020, J.D. was allocated $11,500 of ordinary income from Clampett, Inc., and no separately stated items. How much capital gain does J.D. recognize related to Clampett, Inc., in 2020?

Multiple Choice

• $23,000.

• $11,500.

• None of the choices are correct.

• $57,000.

• $45,500.