Inca Company Reports Current E&P of Negative $100,000 in 20X3

question 73

Multiple Choice

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

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

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Definitions:

OPEC

The Organization of the Petroleum Exporting Countries, an intergovernmental organization coordinating the petroleum policies of its member countries.

Global Supplies

The total availability of goods, commodities, or resources considered at a global scale, affecting markets, economies, and international trade.

Net Energy Ratio

indicates the balance between the amount of energy produced by a system and the energy required to create and maintain it.

Industrial Heat

Heat energy produced and used in industrial processes, such as manufacturing, food processing, and refining.