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Assume that at the end of 2020, Clampett, Incorporated (an S corporation) distributes property (fair market value of $65,500, basis of $13,500) to each of
Assume that at the end of 2020, Clampett, Incorporated (an S corporation) distributes property (fair market value of $65,500, basis of $13,500) to each of its four equal shareholders (aggregate distribution of $262,000). At the time of the distribution, Clampett, Incorporated, has no corporate earnings and profits and J.D. has a basis of $53,400 in his Clampett, Incorporated, stock. How much total income does J.D. recognize as a result of the distribution?
Multiple Choice
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$0
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$13,500
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$52,000
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$65,500
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None of the choices are correct.
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