Barbara and Bud are two equal shareholders of Nexus Corporation since its inception. Each had transferred net assets at inception $($under IRC $351)$ that resulted in the shares of Nexus Corp. having basis of $$20,000$ for each of Barbara and Bud. On July $31$ of $2023$ Bud sells all his shares to Clarence for $$30,000.$ Nexus Corp. had accumulated earnings and profits of $$50,000$ at the beginning of the year $($January $1,2022).$ During the year, Nexus Corp. made two distributions, the first was for $$80,000$ on July $1,2023$ and the second was for $$70,000$ on December $31,2023.$ Nexus Corp. had $$40,000$ of earnings and profits for the current year ended December $31,2023.$