57. First Co. had a deficit in E&P of $90,000 on December 31 last year....
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Accounting
57. First Co. had a deficit in E&P of $90,000 on December 31 last year. Its taxable income was $180,000 for this year. Cash dividends on common stock totaling $80,000 were paid in December this year. Modern should report the distribution to its shareholders as:
1. Return of capital 100 percent
2. Dividends 80/90, return of capital 10/90
3. Dividends 50 percent, return of capital 50 percent
4. Dividend
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