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At the beginning of the year, Clampett, Inc. had $100,000 in its Accumulated Adjustment Account,...

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Accounting

At the beginning of the year, Clampett, Inc. had $100,000 in its Accumulated Adjustment Account, $60,000 of earnings and profits from prior C corporation years. During the year, Clampett, Inc. earned $50,000 of ordinary income and paid $200,000 in distributions to its shareholders. Assume that J.D. owns 25% of Clampett, Inc., his basis in Clampett, Inc. at the beginning of the year is $10,000, and his share of the distribution was $50,000. How much income does J.D. recognize this year from these transactions?

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