Answer:
See bellw
Step-by-step explanation:
Income of J.D related to Clampett = Ordinary income + Capital gain
Given that
Basis distribution = $42,500
Basis stock = $36,000
Ordinary = $11,800
But Capital gain = Basis distribution - (Basis stock + Ordinary income
= $42,500 - ($36,000 + $11,800)
= $42,500 - $47,800
= - $5,300
Therefore, J.D income related to Clampett
= Ordinary income + Capital gain
= $11,800 - $5,300
= $6,500