What is the maximum amount of the dstribution

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Company A, a calender year corporation, has a deficit in current E & P of $100,000 and a $290,000 positive balance in accumulated E & P. If Company A determines that a $500,000 distribution to its shareholders is appropriate at some point during the year, what is the maximum amount of the dstribution that could potentially be treated as a dividend?

a. $0
b. $190,000
c. $240,000
d. $290,000
e. None of the above

I know when there's a deficit in Current E & P but not Accumulated E & P you allocate the current loss proportionally based on the date on of distribution. So I guess I'm wondering if you distributed them on jan 1st would you have to include any of the Current E&P loss?

Reference no: EM13123306

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