A calendar-year corporation has negative current E&P of $(500) and accumulated positive E&P of $1,000. The corporation makes a $600 distribution to its sole shareholder. Which of the following statements is true?
A. $0 of the distribution will be a dividend because current earnings and profits is negative.
B. Up to $600 of the distribution could be a dividend depending on the balance in accumulated earnings and profits on the date of the distribution.
C. $600 of the distribution will be a dividend because accumulated earnings and profits is $1,000.
D. $500 of the distribution will be a dividend because total earnings and profits is $500.