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 $10,000. Marcus is Johnstone's sole shareholder, and he has a stock basis of $40,000 at the end of year 1. What is Johnstone's accumulated adjustments account at the end of year 2. Sales revenue $150,000 Cost of Goods Sold (35,000) Operating expenses (118,000) Interest Income 10,000 Net income $7,000 Distribution to Marcus $6,000