Bruin Company Reports Current E&P of $340,000 in 20X3 and Accumulated

question 61

Multiple Choice

Bruin Company reports current E&P of $340,000 in 20X3 and accumulated E&P at the beginning of the year of $170,000. Bruin distributed $540,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3?

• A)$540,000
• B)$510,000
• C)$340,000
• D)$170,000

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Definitions:

Z-score

A statistical measure that indicates the number of standard deviations a data point is from the mean.

Normal Random Variable

A random variable that has a distribution defined by a normal curve, characterized by its mean and variance.

Mean

A measure of central tendency calculated by dividing the sum of all values in a dataset by the number of values.

Standard Normal Random Variable

A normal distribution with a mean of 0 and standard deviation of 1, used as a reference to determine probabilities for normal distributions.