1. Deficit in accumulated E&P is $(20,000)
Current E&P is $15,000
On 12/31/x1, the Corp distributed $50,000 to its sole SH
How much is considered to be dividend?
2. Accumulated E&P is $15,000
Deficit in current E&P $(20,000)
On 12/31/x1, the Corp distributed $50,000 to its sole SH
How much is considered to be dividend?
3. Accumulated E&P is $15,000
Deficit in current E&P $(20,000)
On 12/31/x1, the Corp distributed $50,000 to its sole SH
A current deficit is treated as happening evenly throughout the year, about when would the AE&P run out?
Is there any E&P left on 12/31?
4. Accumulated E&P is $15,000
Deficit in current E&P $(20,000)
What if the distribution date changes to 6/30?