As of January 1, Cassowary Corporation Has a Deficit in Accumulated

question 50

Multiple Choice

As of January 1, Cassowary Corporation has a deficit in accumulated E & P of $100,000. For the tax year, current E & P (accrued ratably) is $240,000 (prior to any distributions) . On July 1, Cassowary Corporation distributes
$275,000 to its sole shareholder. The amount of the distribution that is a dividend is:

• A) $20,000.
• B) $140,000.
• C) $240,000.
• D) $275,000.
• E) None of these.

---

Definitions:

Special Sense

A type of sensory experience that includes vision, hearing, taste, smell, and balance, involving specific organ systems.

Touch

One of the five senses, involving the perception of sensation through physical contact with the skin.

Hearing

The sensory process by which sounds are perceived, involving the ear's detection of sound waves and their transmission to the brain.

Direct Approach

A communication strategy that involves straightforward and explicitly stating one's intentions or message without ambiguity.