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 $10,910. Marcus is Johnstone's sole shareholder, and he has a stock basis of $43,500 at the end of year 1. Johnstone Corporation Income Statement December 31, Year 2 Year 2 (s Corporation) Sales revenue $ 164,000 Cost of goods sold (38,500) Salary to owners (63,500) Employee wages (54,000) Depreciation expense (7,500) Miscellaneous expenses (4,350) Interest income 11,690 Overall net income $ 7,840 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 $26,700 to Marcus in year 2. Accumulated adjustments account Dividend income | $ $ 0 10,000 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 $10,910. Marcus is Johnstone's sole shareholder, and he has a stock basis of $43,500 at the end of year 1. Johnstone Corporation Income Statement December 31, Year 2 Year 2 (s Corporation) Sales revenue $ 164,000 Cost of goods sold (38,500) Salary to owners (63,500) Employee wages (54,000) Depreciation expense (7,500) Miscellaneous expenses (4,350) Interest income 11,690 Overall net income $ 7,840 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 $26,700 to Marcus in year 2. Accumulated adjustments account Dividend income | $ $ 0 10,000