Will Corporation has two over’s, Gus and Jack who are father and son. Gus owns 100 shares which he acquired in 2005 for 15,000. Jack owns 100 shares which he acquired in 2007 for 21,000. Will Corp. Current E and P is 70,000. on March 18, 2012 Will Corp redeemed 35 shares from Gus and in return for land worth 50,000 with an adjusted basis of 10,000.
Pick the correct answers more than one may be correct:
A. accumulated E and P is identical to GAAP retained earnings.
B. accumulated E and P is similar to GAAP retained earnings.
C. Current E and P is similar to GAAP Net income.
D. Current E and P is identical to GAAP net Income.
E. A and D
F. D and C