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.

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. a. Johnstone distributed $7,500 to Marcus in year 2. b. Johnstone distributed $11,500 to Marcus in year 2 . c. Johnstone distributed $17,500 to Marcus in year 2 . d. Johnstone distributed $27,500 to Marcus in year 2 . 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. a. Johnstone distributed $7,500 to Marcus in year 2. b. Johnstone distributed $11,500 to Marcus in year 2 . c. Johnstone distributed $17,500 to Marcus in year 2 . d. Johnstone distributed $27,500 to Marcus in year 2