Monal Corporation Merged with Bobwhite Corporation Two Years Ago

Monal Corporation merged with Bobwhite Corporation two years ago. At the time of the merger, Monal held an earnings and profits E & P) deficit of $250,000, and Bobwhite had a positive E & P of $200,000. Last year's current E & P was $ 100,000 for the successor company. Despite having only $10,000 E & P for the current year, Monal makes a distribution to its shareholders of $270,000. How is the distribution taxed to the shareholders?

A) $270,000 is taxable.
B) $210,000 is taxable.
C) $110,000 is taxable.
D) $60,000 is taxable.
E) None of these amounts is correct.