Bruin Company Reports Current E&P of $250,000 in 20X3 and Accumulated

question 94

Multiple Choice

Bruin Company reports current E&P of $250,000 in 20X3 and accumulated E&P at the beginning of the year of $125,000. Bruin distributed $450,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3?

• A) $450,000
• B) $375,000
• C) $250,000
• D) $125,000

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