Bruin Company Reports Current E&P of $200,000 in 20X3 and Accumulated

question 103

Multiple Choice

Bruin Company reports current E&P of $200,000 in 20X3 and accumulated E&P at the beginning of the year of $100,000. Bruin distributed $400,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3?

• A)$400,000
• B)$300,000
• C)$200,000
• D)$100,000

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Definitions:

Iconic Memory

A type of visual memory that stores an exact copy of what is seen, but only for a very brief period of time.

Echoic Memory

A form of sensory memory that holds auditory information for a few seconds after the sound is heard.

Automatic Encode

The unconscious processing of incidental information into memory, without the need for active effort or awareness.

Day's Events

Activities, occurrences, or experiences that happen throughout the course of a single day.