ABC Corp. paid two cash distributions during year 5. The first was $42,000, and the second was $33,000. Accumulated earnings and profits (E & P) at the end of year 4 were $80,000. Current E & P for year 5 is $30,000. How will the second distribution be allocated between current E & P and accumulated E & P? Current E & P Accumulated E & P a. $13,200$19,800 b. $16,500$16,500 c. $19,800$13,200 d. $30,000$30,000

ABC Corp. paid two cash distributions during year 5. The first was $42,000, and the second was $33,000. Accumulated earnings and profits (E & P) at the end of year 4 were $80,000. Current E & P for year 5 is $30,000. How will the second distribution be allocated between current E & P and accumulated E & P? Current E & P Accumulated E & P a. $13,200$19,800 b. $16,500$16,500 c. $19,800$13,200 d. $30,000$30,000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 7BCRQ

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