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

question 84

Multiple Choice

Aztec Company reports current E&P of $200,000 in 20X3 and accumulated E&P at the beginning of the year of negative $100,000. Aztec distributed $300,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3?

• A) $300,000.
• B) $200,000.
• C) $100,000.
• D) $0.

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Definitions:

Intuitive

Relating to knowing or understanding something without the need for conscious reasoning; instinctive.

Conventional

Adhering to accepted standards and norms, especially in a way that lacks originality.

Intuitive Thought

A cognitive process that involves understanding or knowing something without the need for conscious reasoning.

Factual

Based on facts; representing information that is true and can be verified through evidence or observation.