Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2. Johnstone's earnings and profits at the end of year 1 were $12,470. Marcus is Johnstone's sole shareholder, and he has a stock basis of $49,500 at the end of year 1.

Johnstone Corporation
Income Statement
December 31, Year 2
	Year 2 (S Corporation)
Sales revenue	$ 188,000
Cost of goods sold	(44,500)
Salary to owners	(69,500)
Employee wages	(60,000)
Depreciation expense	(13,500)
Miscellaneous expenses	(4,950)
Interest income	13,730
Overall net income	$ 9,280

What is Johnstone's accumulated adjustments account at the end of year 2, and what amount of dividend income does Marcus recognize on the year 2 distribution in each of the following alternative scenarios?

Note: Leave no answer blank. Enter zero if applicable.

c. Johnstone distributed $17,900 to Marcus in year 2.