Omega Corporation is formed in 2006. Its current E&P and distributions for each year through 2010 are as follows: $$\begin{array} { c c c }
\text { Year } & \text { Current E\&P (deficit) } & \text { Distributions } \
2007 & \$ ( 20,000 ) & 0 \
2008 & 30,000 & 0 \
2009 & 36,000 & \$ 18,000 \
2010 & 16,000 & 0
\end{array}$$ Is the distribution made from current or accumulated E&P? At the beginning of 2011, what is accumulated E&P?

Question

Omega Corporation is formed in 2006. Its current E&P and distributions for each year through 2010 are as follows: $$\begin{array} { c c c } 
\text { Year } & \text { Current E\&P (deficit) } & \text { Distributions } \
2007 & \$ ( 20,000 ) & 0 \
2008 & 30,000 & 0 \
2009 & 36,000 & \$ 18,000 \
2010 & 16,000 & 0
\end{array}$$ Is the distribution made from current or accumulated E&P? At the beginning of 2011, what is accumulated E&P?

Quizplus · Accepted Answer

The Answer of Omega Corporation is formed in 2006. Its current E&P and distributions for each year through 2010 are as follows: $$\begin{array} { c c c } 
\text { Year } & \text { Current E\&P (deficit) } & \text { Distributions } \
2007 & \$ ( 20,000 ) & 0 \
2008 & 30,000 & 0 \
2009 & 36,000 & \$ 18,000 \
2010 & 16,000 & 0
\end{array}$$ Is the distribution made from current or accumulated E&P? At the beginning of 2011, what is accumulated E&P?

Omega Corporation Is Formed in 2006 Is the Distribution Made from Current or Accumulated E&P? at Distributions