Maria and Christopher Each Own 50% of Cockatoo Corporation, a Calendar

Multiple Choice

Maria and Christopher each own 50% of Cockatoo Corporation, a calendar year taxpayer. Distributions fromCockatoo are: $750,000 to Maria on April 1 and $250,000 to Christopher on May 1. Cockatoo's current E & P is $300,000 and its accumulated E & P is $600,000. How much of the accumulated E & P is allocated to Christopher's distribution?

A) $0
B) $75,000
C) $150,000
D) $300,000
E) None of the above