Stacey and Eva Each Own One-Half of the Stock in Parakeet

Multiple Choice

Stacey and Eva each own one-half of the stock in Parakeet Corporation, a calendar year taxpayer. Cash distributions from Parakeet are: $350,000 to Stacey on April 1 and $150,000 to Eva on May 1. If Parakeet's current E & P is $60,000, how much is allocated to Eva's distribution?

A) $5,000
B) $10,000
C) $18,000
D) $30,000
E) None of the above