Wildcat Corporation reports current E&P of negative $200,000 in 20X3 and accumulated E&P at the beginning of the year of $100,000. Wildcat distributed $300,000 to its sole shareholder on December 31, 20X3. How much of the distribution is treated as adividend in 20X3?

Question

Quizplus · Accepted Answer

The distribution is treated as a dividend to the extent of Wildcat's accumulated E&P at the beginning of the year, which is $100,000.

Wildcat Corporation Reports Current E&P of Negative $200,000 in 20X3