Question: 19. Simon, a C corporation, had a deficit in accumulated earnings and profits of $50,000 at the beginning of the year and had current earnings

19. Simon, a C corporation, had a deficit in accumulated earnings and profits of $50,000 at the beginning of the year and had current earnings and profits of $10,000. At year end, Simon paid a dividend of $15,000 to its sole shareholder.

What amount of the dividend is reported as income?

a. $0

b. $ 5,000

c. $10,000

d. $15,000

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