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

question 69

Multiple Choice

Purple Corporation has accumulated E & P of $100,000 on January 1, 2016. In 2016, Purple has current E & P of $130,000 (before any distribution) . On December 31, 2016, the corporation distributes $250,000 to its sole shareholder, Cindy (an individual) . Purple Corporation's E & P as of January 1, 2017 is:

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

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Definitions:

Voucher Register

A record containing details about payment vouchers, including the payee, amount, date, and purpose of each payment.

Voucher Register

A record of all vouchers issued by a business, detailing payments made or to be made for goods or services.

Liabilities

Financial obligations or debts owed by a company to creditors.

Internal Control

Processes and procedures implemented by a company to safeguard its assets, ensure accurate financial reporting, and promote compliance with laws and regulations.