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 $10,000. Current E & P for year 5 is $30,000. How will the first distribution be allocated between current E & P and accumulated E & P? Current E & P Accumulated E & P a. $16,800$25,200 b. $16,800$10,000 c. $25,200$16,800 d. $30,000$10,000
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 $10,000. Current E & P for year 5 is $30,000. How will the first distribution be allocated between current E & P and accumulated E & P? Current E & P Accumulated E & P a. $16,800$25,200 b. $16,800$10,000 c. $25,200$16,800 d. $30,000$10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Becker CPA Review 19-8
ABC Corp. paid two cash distributions during year 5. The first was $42,000, and the second was $33,000.
| Current E & P | Accumulated E & P |
a.
$16,800$25,200
b.
$16,800$10,000
c.
$25,200$16,800
d.
$30,000$10,000
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