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

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

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

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

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.