Required information [The following information applies to the questions displayed below.] Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2. Johnstone's earnings and profits at the end of year 1 were $10,000. Marcus is Johnstone's sole shareholder, and he has a stock basis of $40,000 at the end of year 1. Johnstone Corporation Sales revenue Income Statement December 31, Year 2 Cost of goods sold Year 2 (S Corporation) $ 150,000 (35,000) (60,000) (50,000) Salary to owners Employee wages Depreciation expense Miscellaneous expenses Interest income Overall net income (4,000) (4,000) 10,000 $ 7,000 What is Johnstone's accumulated adjustments account at the end of year 2, and what amount of dividend income does Marcus recognize on the year 2 distribution in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.) a. Johnstone distributed $6,000 to Marcus in year 2. Accumulated adjustments account Dividend income b. Johnstone distributed $10,000 to Marcus in year 2. Accumulated adjustments account Dividend income c. Johnstone distributed $16,000 to Marcus in year 2. Accumulated adjustments account Dividend income d. Johnstone distributed $26,000 to Marcus in year 2. Accumulated adjustments account Dividend income