I:16-51 Earnings and Profits (E&P). North Corporation has $200,000 of accumulated E&P at the beginning of the current year. North distributed $300,000 cash during the current year to its shareholders. The company’s operating results for the current year are as follows:

Taxable income $100,000 Tax-exempt bond interest 10,000 Dividends-received deduction 7,000 Federal income tax liability 21,000 Net capital loss 27,000

a. What is North Corporation’s current E&P?

b. How much of the $300,000 cash distribution is taxable as a dividend?

c. What is North’s accumulated E&P balance (deficit) at the end of the current year?