Inca Company Reports Current E&P of Negative $100,000 in Year

Multiple Choice

Inca Company reports current E&P of negative $100,000 in year 1 and accumulated E&P at the beginning of the year of $200,000.Inca distributed $300,000 to its sole shareholder on January 1, year 1.How much of the distribution is treated as a dividend in year 1?

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