Becker CPA Review $19-7$

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

a$.$

b$.$

c$.$

$$19,800$

d$.$

d$.$

Accumulated E & P

$$19,800$

$$16,500$

$$13,200$

$$30,000$