ABC Corp. paid two cash distributions during year 5. The first was $42,000, and the second was $33,000. Accumulated earnings and profits (E & P) at the end of year 4 were $80,000. Current E & P for year 5 is $30,000. How will the second distribution be allocated between current E & P and accumulated E & P?

Current E & P

Accumulated E & P

a. $13,200 $19,800

b. $16,500 $16,500

c. $19,800 $13,200

d. $30,000 $30,000