Question 1: Orleans Inc. distributed $500,000 in a year in which its current E&P was $400,000 and it accumulated E&P was a negative $750,000. How much of this distribution was a dividend to Orleans's shareholders? Explain your rational, citing appropriate authorities.
Question 2: Mr. Smith, CEO of Orleans Inc, has asked for clarification on the difference between retained earnings and E&P. How would you explain it to him? I encourage you to think outside of the box on this one!
Please list your reference pages.