Munju Corporation is a calendar year, manufacturing corporation which was formed in 1974 and had accumulated earnings and profits of $200,000 as of the end of the preceding taxable year. During the current year, Munju Corporation had taxable income of $400,000. Munju Corporation has not yet paid any dividends during the current year. As of the end of the current taxable year, Munju Corporation can justify $275,000 as being needed to meet reasonable business needs.
REQUIRED: It is now December 31st. Please compute how much needs to be paid in dividends to avoid the accumulated earnings tax. In addition, please state when these dividends need to be paid.