A Calendar-Year Corporation Has Negative Current E&P of $500 and Accumulated

question 80

Multiple Choice

A calendar-year corporation has negative current E&P of $500 and accumulated positive E&P of $1,000.The corporation makes a $600 distribution to its sole shareholder.Which of the following statements is true?

• A)$500 of the distribution will be a dividend because total earnings and profits is $500.
• B)$0 of the distribution will be a dividend because current earnings and profits is negative.
• C)$600 of the distribution will be a dividend because accumulated earnings and profits is $1,000.
• D)Up to $600 of the distribution could be a dividend depending on the balance in accumulated earnings and profits on the date of the distribution.

---

Definitions:

Dream Analysis

A therapeutic technique used in psychoanalysis to interpret the hidden meaning of dreams, believed to reflect unconscious desires and conflicts.

Behaviour Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques and other strategies.

Psychotherapy

A treatment method involving psychological techniques designed to assist individuals in overcoming difficulties or achieving personal insight.

Church Doctrine

Official teachings and beliefs sanctioned by a religious institution, particularly within Christianity.