Duck Corporation Is a Calendar Year Taxpayer Formed in 2005

question 22

Multiple Choice

Duck Corporation is a calendar year taxpayer formed in 2005.Duck's E & P for each of the past 5 years is listed below. Duck Corporation made the following distributions in the previous 5 years.
2009 Land (basis of $700,000,fair market value of $800,000)
2006 $200,000 cash
Duck's accumulated E & P as of January 1,2011 is:

• A) $910,000.
• B) $950,000.
• C) $1,010,000.
• D) $1,050,000.
• E) None of the above.

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Definitions:

Isometric Drawing

A method of visual representation of a three-dimensional object, drawn on a two-dimensional surface where the three principal axes appear equally foreshortened.

Decimal Point

A dot or small symbol used to separate the integer part from the fractional part of a number in decimal notation.

Fractional-Inch

A unit of measurement in the customary system used in the United States, where measurements are expressed in fractions of an inch.

Reamers

Tools used to widen the size of a hole to precise dimensions and to improve its finish.