A calendar$-$year corporation has positive current E&P of $$1,500$ and a deficit in accumulated E&P of $($$$2,000).$ The corporation makes a $$500$ distribution to its sole shareholder on July $1.$ Which of the following statements is true?

Multiple Choice

The distribution may be a dividend, depending on whether total $($net$)$ earnings and profits at the date of the distribution is positive.

The distribution will be a dividend of $$500.$

The distribution will not be a dividend because total $($net$)$ earnings and profits is a negative $$500$ this year.

A distribution from a corporation to a shareholder is always a dividend, regardless of the balance in accumulated earnings and profits.