Rust Corporation Has Accumulated E & P of $30,000 on January

question 48

Multiple Choice

Rust Corporation has accumulated E & P of $30,000 on January 1,2008.In 2008,Rust Corporation had an operating loss of $40,000.It distributed cash of $20,000 to Andre,its sole shareholder,on December 31,2008.Rust Corporation's balance in its E & P account as of January 1,2009,is:

• A)$30,000 deficit.
• B)$10,000 deficit.
• C)$0.
• D)$30,000.
• E)None of the above.

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Definitions:

Primary Group

A small group of people who are characterized by close, long-lasting, intimate, and face-to-face interaction.

Emotional Sustenance

Support or nourishment for one's emotional state or wellbeing.

Nurturance

The act of caring for and encouraging the growth or development of someone or something.

Nuclear Family

A basic social unit consisting of parents and their children, considered as a group, whether dwelling together or not.