Starling Corporation Has Accumulated E & P of $60,000 on January

Multiple Choice

Starling Corporation has accumulated E & P of $60,000 on January 1, 2018. In 2018, Starling Corporation had an operating loss of $80,000. It distributed cash of $40,000 to Zoe, its sole shareholder, on December 31, 2018. Starling Corporation's balance in its E & P account as of January 1, 2019, is:

A) $60,000 deficit.
B) $20,000 deficit.
C) $0.
D) $60,000.
E) None of the above.