Wildcat Corporation Reportsa Deficit in Current E&P of ($200,000)in 20X3

Multiple Choice

Wildcat Corporation reportsa deficit in current E&P of ($200,000) in 20X3 and accumulated E&P at the beginning of the year of $100,000. Wildcat distributed $300,000 to its sole shareholder on December 31, 20X3. How much of the distribution is treated as a dividend in 20X3?

A) $0
B) $100,000
C) $200,000
D) $300,000