Clampett, Inc. has been an S corporation since its inception. On July 15, 2019, Clampett, Inc. distributed $49,000 to J. D. His basis in his Clampett, Inc. stock on January 1, 2019, was $41,000. For 2019, J. D. was allocated $1,000 of ordinary income from Clampett, Inc. and no separately stated items. What is J. D.'s basis in his Clampett, Inc. stock after all transactions in 2019?

Multiple Choice

• $42,000.

• $40,000.

• $1,000.

• None of the choices are correct.

• $41,000.