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 $11.950. Marcus Is Johnstone's sole shareholder, and he has a stock basis of $47,500 at the end of year 1. Johnstone Corporation Income Statement December 31, Year 2 Sales revenue Year 2 (S Corporation) $ 180,000 (42,500) Cost of goods sold Salary to owners (67,500) Employee wages (58,000) Depreciation expense (11,500) Miscellaneous expenses (4,750) Interest income 13,050 Overall net income $ 8,800 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? (Leave no answer blank. Enter zero if applicable.) a. Johnstone distributed $7,500 to Marcus in year 2. Accumulated adjustments account Dividend income $ 0