Clampett, Inc. has been an S corporation since its inception. On July 15, 2012, Clampett, Inc. distributed $50,000 to J. His basis in his Clampett,…

77. Clampett, Inc. has been an S corporation since its inception. On July 15, 2012, Clampett, Inc. distributed$50,000 to J.D. His basis in his Clampett, Inc. stock on January 1, 2012, was $30,000. For 2012, J.D. wasallocated $10,000 of ordinary income from Clampett, Inc. and no separately stated items. What is J.D.’sbasis in his Clampett, Inc. stock after all transactions in 2012?A. $40,000.B. $30,000.C. $20,000.D. $10,000.E. None of the above.The answer states its E-None of the above…. I’m not sure how this is figured out?? Please help! Thanks

Question:77. Clampett, Inc. has been an S corporation since its inception. On July 15, 2012, Clampett,Inc. distributed $50,000 to J.D. His basis in his Clampett, Inc. stock on January 1, 2012,…