Purple Corporation Has Accumulated E & P of $100,000 on January

question 61

Multiple Choice

Purple Corporation has accumulated E & P of $100,000 on January 1, 2012.In 2012, Purple has current E & P of $130,000 (before any distribution) .On December 31, 2012, the corporation distributes $250,000 to its sole shareholder, Cindy (an individual) .Purple Corporation's E & P as of January 1, 2013 is:

• A)$0.
• B)($20,000).
• C)$100,000.
• D)$130,000.
• E)None of the above.

Identify legal principles and bank policies on the handling of checks and stop-payment orders as illustrated through case law.

Understand the roles and responsibilities of banks and customers under the Electronic Funds Transfer Act.

Learn about different truncation processes and their significance in banking transactions.

Appreciate the impact of the Expedited Funds Availability Act on check holds and fund availability.

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Definitions:

Drawee

The party, usually a bank, that is directed to pay a certain amount of money from a person's account as stated in a check or draft.

Altered Check

A cheque that has been modified in a material way (e.g., changing the amount or payee) without the authorization of the issuer.

Check Alteration

The unauthorized modification of a check's details, typically to fraudulently redirect funds or increase the amount.

Negligence

A legal concept entailing a failure to exercise appropriate care or a breach of duty that results in harm or damage to another party.