Tax Accounting Review

9) Oxnard Corporation has accumulated E&P of negative $40,000 and current E&P of $50,000. Oxnard made a $60,000 dividend distribution to its shareholders during the year. As a result of this distribution A) The shareholders will have $60,000 of taxable income B) The corporation's accumulated E&P at the end of the year will equal negative $50,000. C) The corporation's accumulated E&P at the end of the year will equal negative $40,000. D) The shareholder's total basis in stock will stay the same as before the distribution 10) ABC Corporation has taxable income of $300,000. What is ABC's computed income tax