Inca Company reports a deficit in current E&P of ($125,000) in 20X3 and accumulated E&P at the

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Inca Company reports a deficit in current E&P of ($125,000) in 20X3 and accumulated E&P at the beginning of the year of $250,000. Inca distributed $350,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3?

Multiple Choice

$0
$125,000
$350,000
$250,000

Posted Date: Dec 05, 2021 02:02 PM

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Inca Company reports a deficit in current E&P of ($125,000) in 20X3 and accumulated E&P at the

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Correct choice 250000 Explanation In the given case the ... View the full answer

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