Maria and Christopher Each Own 50% of Cockatoo Corporation, a Calendar

question 93

Multiple Choice

Maria and Christopher each own 50% of Cockatoo Corporation, a calendar year taxpayer. Distributions fromCockatoo are: $750,000 to Maria on April 1 and $250,000 to Christopher on May 1. Cockatoo's current E & P is $300,000 and its accumulated E & P is $600,000. How much of the accumulated E & P is allocated to Christopher's distribution?

• A) $0
• B) $75,000
• C) $150,000
• D) $300,000
• E) None of the above

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Definitions:

Equal Protection

A principle under the Fourteenth Amendment of the U.S. Constitution guaranteeing that no state will deny any person within its jurisdiction the equal protection of the laws.

Amendment

A formal change or addition to a legal or statutory document.

Reconstruction Plan

Relates to the strategies and policies implemented to rebuild and reorganize the Southern United States after the Civil War.

Presidential Pardons

A legal mechanism that allows the president of the United States to fully forgive an individual for federal crimes, thereby removing any remaining penalties or punishments.