hance Corporation has a $20,000 deficit in earnings and profits as of January 1, 2014. During 2014, the corporation has current earnings and profits of $40,000 and makes a $70,000 cash distribution to its shareholders. What part of the distribution is taxable as dividend income to Chance's shareholders?
A) $- 0 -
B) $20,000
C) $30,000
D) $40,000
E) $70,000

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The Answer of hance Corporation has a $20,000 deficit in earnings and profits as of January 1, 2014. During 2014, the corporation has current earnings and profits of $40,000 and makes a $70,000 cash distribution to its shareholders. What part of the distribution is taxable as dividend income to Chance's shareholders?
A) $- 0 -
B) $20,000
C) $30,000
D) $40,000
E) $70,000

Hance Corporation Has a $20,000 Deficit in Earnings and Profits