Omega Corporation is formed in 2006. Its current E&P and distributions for each year through 2010 are as follows:
$\begin{array}{lll}
\text {Year}&\text {Current E\&P (deficit)}&\text {Distributions}\
2007 & \$(20,000) & 0 \
2008 & 30,000 & 0 \
2009 & 36,000 & \$ 18,000 \
2010 & 16,000 & 0
\end{array}$
Is the distribution made from current or accumulated E&P? At the beginning of 2011, what is accumulated E&P?

Question

Omega Corporation is formed in 2006. Its current E&P and distributions for each year through 2010 are as follows:
 $\begin{array}{lll}
\text {Year}&\text {Current E\&P (deficit)}&\text {Distributions}\
2007 & \$(20,000) & 0 \
2008 & 30,000 & 0 \
2009 & 36,000 & \$ 18,000 \
2010 & 16,000 & 0
\end{array}$
 Is the distribution made from current or accumulated E&P? At the beginning of 2011, what is accumulated E&P?

Quizplus · Accepted Answer

The Answer of Omega Corporation is formed in 2006. Its current E&P and distributions for each year through 2010 are as follows:
 $\begin{array}{lll}
\text {Year}&\text {Current E\&P (deficit)}&\text {Distributions}\
2007 & \$(20,000) & 0 \
2008 & 30,000 & 0 \
2009 & 36,000 & \$ 18,000 \
2010 & 16,000 & 0
\end{array}$
 Is the distribution made from current or accumulated E&P? At the beginning of 2011, what is accumulated E&P?

Omega Corporation Is Formed in 2006 Is the Distribution Made from Current or Accumulated E&P? at Distributions