Clampett, inc. has been an s corporation since its inception. on july 15, 2019, clampett, inc. distributed $40,500 to j. d. his basis in his clampett, inc. stock on january 1, 2019, was $35,000. for 2019, j. d. was allocated $12,000 of ordinary income from clampett, inc. and no separately stated items. how much capital gain does j. d. recognize related to clampett, inc. in 2019? a. $40,500.b. $12,000.c. none of the choices are correct. d. $52,500.e. $24,000.

c. None of the choices are correct

Explanation:

Calculation of capital gain  

Basis of stock                                       $35,000

Allocated ordinary income               $12,000

Total basis                                       $47,000

Amount distributed                       $40,500

Therefore, Since basis is more than distribution capital gain, The capital gain is $0.

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the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported