Aztec Company Reports Current E&p of $200,000 in Year 1

Question 43
Multiple Choice

Aztec Company reports current E&P of $200,000 in year 1 and accumulated E&P at the beginning of the year of negative $100,000.Aztec distributed $300,000 to its sole shareholder on January 1, year 1.How much of the distribution is treated as a dividend in year 1? A)$300,000. B)$200,000. C)$100,000. D)$0.