A Calendar-Year Corporation Has Negative Current E&P of $500 and Accumulated

question 80

Multiple Choice

A calendar-year corporation has negative current E&P of $500 and accumulated positive E&P of $1,000.The corporation makes a $600 distribution to its sole shareholder.Which of the following statements is true?

• A)$500 of the distribution will be a dividend because total earnings and profits is $500.
• B)$0 of the distribution will be a dividend because current earnings and profits is negative.
• C)$600 of the distribution will be a dividend because accumulated earnings and profits is $1,000.
• D)Up to $600 of the distribution could be a dividend depending on the balance in accumulated earnings and profits on the date of the distribution.

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Definitions:

Manic Disorder

is often referred to as part of bipolar disorder, characterized by periods of extremely elevated mood, energy, and unusual activity levels.

Alogia

A term used in psychiatry to describe a poverty of speech, where an individual produces brief and unelaborated responses during conversation.

Poverty of Speech

A reduction in the amount of spontaneous speech, often seen in various psychiatric and neurological conditions.

Loss of Volition

A decrease in the motivation or ability to make decisions or initiate voluntary action, often a symptom of psychological disorders.