The Amble Corporation has $4,000 in current earnings and profits and $23,000 in accumulated earnings and profits It makes a $6,000 dividend distribution at the end of the year to its shareholders How is this distribution taxed, and what is the corporation 's balance in CE P and AE P at the beginnin...

All 6000 is taxable as a dividend distrib ...

The Amble Corporation has $4,000 in current earnings and profits and $23,000 in accumulated earnings and profits.

Question:

The Amble has $4,000 in current earnings and profits and $23,000 in accumulated earnings and profits. It makes a $6,000 at the end of the year to its shareholders. How is this taxed, and what is the corporation's balance in CE&P and AE&P at the beginning of the next year?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...