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

question 89

Multiple Choice

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

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

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Definitions:

Code Of Silence

A cultural norm among certain groups, particularly in law enforcement or other organizations, not to report on a colleague's errors, misconduct, or crimes.

Civilian Review Bodies

Organizations or boards established to oversee and review the conduct of law enforcement agencies, aiming to increase accountability and transparency.

Subpoena Power

The legal authority to compel the production of documents, evidence, or the appearance of witnesses in a court of law or legal proceeding.

Impose Discipline

The act of enforcing rules or standards of behavior and applying penalties for violations to maintain order.