Purple Corporation has accumulated E & P of $200,000 on January 1, 2015. In 2015, Purple has a deficit of $130,000 (before any distribution) for the current year. On December 31, 2015, the corporation distributes $150,000 to its sole shareholder, Cindy (an individual). Purple Corporations E & P as of January 1, 2016 is:

a. $0.

b. ($20,000).

c. $50,000.

d. ($80,000).

e. None of the above