Clampett, Inc. (an S corporation) previously operated as a C corporation. Under general rules, distributions from Clampett, Inc. are deemed to be paid in the following order:

• A- Shareholder's remaining stock basis, prior C corporation earnings and profit, the AAA account.

• B- Shareholder's remaining stock basis, the AAA account, prior C corporation earnings and profit.

• C- Prior C corporation earnings and profit, the AAA account, shareholder's remaining stock basis.

• D- The AAA account, prior C corporation earnings and profit, shareholder's remaining stock basis.

• E- None of the choices are correct.

• Please explain