Poppy Corporation Was Formed Three Years Ago Poppy Corporation's Accumulated E&P on January 1 Will Be
A)

Poppy Corporation was formed three years ago. Poppy's E&P history is as follows: $\begin{array}{|c|c|c|}\hline \text { Year } & \text { Current E\&P } & \text { Distributions } \\\hline2005 & \$ 6,000 & \$ 4,000 \\2006 & 5,000 & 1,000 \\2007 & 1,000 & 0 \\\hline\end{array}$ Poppy Corporation's accumulated E&P on January 1 will be

A) $5,000.
B) $7,000.
C) $12,000.
D) $0.