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Required information The following information applies to the questions displayed below) Assume the following year 2 income statement for Johnstone Corporation, which was a corporation

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Required information The following information applies to the questions displayed below) Assume the following year 2 income statement for Johnstone Corporation, which was a corporation in year 1 and elected to be taxed as an Scorporation beginning in year 2. Johnstone's earnings and profits at the end of year I were $12.210. Marcus is Johnstone's sole shareholder, and he has a stock basis of $48,500 at the end of year 1. Johnstone Corporation Income Statement December 31, Year 2 Year 2 (s Corporation) Sales revenue $ 184,000 Cost of goods sold (43,500) Solory to owners (68,500) Employee wages (59.000) Depreciation expense (12,500) Miscellaneous expenses (4,850 Interest income 15.390 Overall net income 5 9.000 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 le Overall net income 9,040 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 $7700 to Marcus in year 2 Accumulated adjustments account Dividend income $ 0 kequsu mim 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.) b. Johnstone distributed $11,700 to Marcus in year 2 Accumulated adjustments account Dividend income 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.) c. Johnstone distributed $17700 to Marcus in year 2 Accumulated adjustments account Dividend income Overall net income . 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.) d. Johnstone distributed $27.700 to Marcus in year 2 Accumulated adjustments account Dividend income

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