Clampett, Inc. has been an S corporation since its inception. On July 15, 2019, Clampett, Inc. distributed $78,000 to J. D. His basis in his Clampett, Inc. stock on January 1, 2019, was $39,000. For 2019, J. D. was allocated $38,000 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

• $77,000.
• $39,000.
• $1,000.
• $38,000.
• NONE OF THEM