31

Assume that at the end of 2022, Clampett, Incorporated (an S corporation) distributes property (fair market value of $64,000, basis of $13,000 ) to each of its four equal shareholders (aggregate distribution of $256,000). At the time of the distribution, Clampett, Incorporated, has no corporate earnings and profits and J.D. has a basis of $53,200 in his Clampett, Incorpprated, stock. How much total income does J.D. recognize as a result of the distribution? Multiple Choice $0 $13,000 $51,000 $64,000 None of the choices are correct. Clampett, Incorporated, has been an S corporation since its inception. On July 15, 2023, Clampett, Incorporated, distributed $60,000 to J.D. His basis in his Clampett, Incorporated, stock on January 1, 2023, was $32,000. For 2023 , J.D. was allocated $20,000 of ordinary income from Clampett, Incorporated, and no separately stated items. What is J.D.'s basis in his Clampett, Incorporated, stock after all transactions in 2023 ? Multiple Choice $52,000 $32,000 $12,000 ($20,000) None of the choices are correct