1.Clampett, Inc. has been an S corporation since its inception. On July 15, 2018, Clampett, Inc. distributed $47,000 to J. D. His basis in his Clampett, Inc. stock on January 1, 2018, was $43,000. For 2018, J. D. was allocated $3,000 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?

Multiple Choice $46,000. $43,000. $40,000. $3,000. None of the choices are correct.

This year Don and his son purchased real estate for an investment. The price of the property was $595,000, and the title named Don and his son as joint tenants with the right of survivorship. Don provided $410,000 of the purchase price and his son provided the remaining $185,000. Has Don made a taxable gift and, if so, in what amount?

Multiple Choice

• Don has made a taxable gift of $283,500.

• Don has made a taxable gift of $112,500.

• Don has made a taxable gift of $64,500.

• Don has made a taxable gift of $98,500.

• None of the choices are correct - Don did not make a taxable gift.