Clampett, Inc. (an S corporation) previously operated as a C corporation. Distributions from Clampett, Inc. are deemed to be paid in the following order: A. Shareholder's remaining stock basis, prior C corporation earnings and profit, the AAA account B. Shareholder's remaining stock basis, the AAA account, prior C corporation earnings and profit C. Prior C corporation earnings and profit, the AAA account, shareholder's remaining stock basis D. The AAA account, prior C corporation earnings and profit, shareholder's remaining stock basis

Respuesta :

Answer:

The Correct Answer is "D"

Explanation:

The AAA account, earlier C enterprise income and benefit, investor's staying stock premise

As Per Section 1371(e)(1)  

Disseminate tax exempt Money before end of C organization to the degree to

  1. Its aggregated changes account (AAA), and  
  2. The investors' premise in the enterprise's stock.  

So Before shutting down or end of C enterprise it ought to distribute tax exempt Money .