E is wrong

Clampett, Inc. has been an S corporation since its inception. On July 15, 2017, Clampett, Inc. distributed $47,000 to J. D. His basis in his Clampett, Inc. stock on January1, 2017, was $43, 500. For 2017, J. D. was allocated $10, 300 of ordinary income from Clampett, Inc. and no separately stated items. How much capital gain does J. D. recognize related to Clampett, Inc. in 2017? $20, 600. $47,000. $57, 300. None of the choices are correct. $10, 300