Inca Company Reports a Deficit in Current E&P of ($165,000)in

question 40

Multiple Choice

Inca Company reports a deficit in current E&P of ($165,000) in 20X3 and accumulated E&P at the beginning of the year of $330,000. Inca distributed $430,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3?

• A)$0
• B)$165,000
• C)$330,000
• D)$430,000

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Definitions:

Large Demand

A significant consumer interest or need for a product or service which often leads to high sales volume.

Expiration Dates

The specified dates after which a product, especially food or medicine, is not guaranteed to be safe or effective and should not be used.

Periodic Supplies

Items or materials that are regularly replaced or replenished over a specified period due to use or expiry.

Reordered

The process of placing a new order for goods or services that were previously ordered or purchased, often to replenish stock or resources.