Good Times Corporation Has a $60,000 Accumulated E&P Balance at the Beginning

Multiple Choice

Good Times Corporation has a $60,000 accumulated E&P balance at the beginning of the year and incurs a $100,000 deficit during the year. Because of its poor operating performance, Good Times pays only three of its usual $10,000 quarterly dividend payments to its sole shareholder: those ordinarily paid March 31, June 30, and September 30. How are the March 31, June 30, and September 30 payments of $10,000 treated?

A) dividend; dividend; return of capital
B) dividend; return of capital; return of capital
C) return of capital; dividend; dividend
D) return of capital; return of capital; dividend