Assume That at the End of 2020, Clampett, Incorporated (An

Multiple Choice

Assume that at the end of 2020, Clampett, Incorporated (an S corporation) distributes property (fair market value of $43,000, basis of $6,000) to each of its four equal shareholders (aggregate distribution of $172,000) . At the time of the distribution, Clampett, Incorporated, has no corporate earnings and profits and J.D. has a basis of $50,400 in his Clampett, Incorporated, stock. How much total income does J.D. recognize as a result of the distribution?

A) $0
B) $6,000
C) $37,000
D) $43,000
E) None of the choices are correct.