At the beginning of the year, Clampett, Incorporated, had $100,000 in its AAA and $60,000 of earnings and profits from prior C corporation years. During the year, Clampett, Incorporated, earned $50,000 of ordinary income and paid $200,000 in distributions to its shareholders. Assume that J.D. owns 25 percent of Clampett, Incorporated, his basis in Clampett, Incorporated, at the beginning of the year is $30,000, and his share of the distribution was $50,000. 

What is J.D.'s basis in the Clampett, Incorporated, stock after these transactions?

Answer rating: 100% (QA)

To determine JDs basis in Clampett Incorporated stock after the given transactions we need to c... View the full answer