Which of the Following Statements Best Describes the Role of Current

Which of the following statements best describes the role of current and accumulated earnings and profits in determining if at least a portion of a distribution is a dividend?

A) A distribution will be a dividend only to the extent total earnings and profits (current plus accumulated) is positive at the time of the distribution.
B) No part of a distribution will be a dividend if current earnings and profits is negative.
C) A distribution will be at least in part a dividend if current earnings and profits for the year is positive, even if accumulated earnings and profits is negative.
D) No part of a distribution will be a dividend if current earnings and profits for the year is negative, even if accumulated earnings and profits is positive.