26- Circus is a calendar-year S corporation that is owned 100% by Clown. At the end of the tax year after considering all current year income and losses Clown has a basis in his stock of $80,000 and Circus has $60,000 of earning and profits and $40,000 in its accumulated adjustments account. Circus distributes cash of $75,000 to Clown on the last day of the tax year. After the distribution, what balance does Circus have in its earning and profits and its accumulated adjustments account? Earnings and Profits AAA O $0 $25,000 O $25,000 $60,000 O $40,000 $0 O $25,000 $0