As of January 1,2012,Owl Corporation (A Calendar Year C Corporation)has

As of January 1,2012,Owl Corporation (a calendar year C corporation) has a deficit in accumulated earnings and profits (E & P) of $150,000.In 2012,it has current E & P of $200,000 and distributes a $220,000 dividend to its shareholders.A result of these transactions is:

A) As of January 1, 2013, Owl's deficit in accumulated E & P is $150,000.
B) As of January 1, 2013, Owl's accumulated E & P is $50,000.
C) The shareholders recognize dividend income of $50,000.
D) The shareholders recognize dividend income of $220,000.
E) None of the above.