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 $10,000. Current E & P for year 5 is $30,000. How will the first distribution be allocated between current E & P and accumulated E & P?

     Current E & P                  Accumulated E & P
a. $16,800...................................................$25,200
b. $16,800...................................................$10,000
c. $25,200...................................................$16,800
d. $30,000...................................................$10,000