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Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation...

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Accounting

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Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2 . Johnstone's earnings and profits at the end of year 1 were $13,120. Marcus is Johnstone's sole shareholder, and he has a stock basis of $52,000 at the end of year 1. What is Johnstone's accumulated adjustments account at the end of year 2 , and what amount of dividend Income does Marcus recognize on the year 2 distribution in each of the following alternatlve scenarlos? Note: Leave no answer blank. Enter zero If appllcable. a. Johnstone distributed $8,400 to Marcus in year 2 b. Johnstone distributed $12,400 to Marcus in year 2 c. Johnstone distributed $18,400 to Marcus in year 2 . d. Johnstone distrlbuted $28,400 to Marcus in year 2

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