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Werling Corporation has current Earnings & Profits ("EP") of $25,000 and accumulated EP of ...

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Accounting

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Werling Corporation has current Earnings & Profits ("EP") of $25,000 and accumulated EP of
$10,000. Werling Corporation makes the following distributions to its shareholders during the year:
(a) Please allocate Werling Corporation's current EP between Mike and Andrea. How much
current EP do they each receive?
Mike:
Andrea:
(b) Please allocate Werling Corporation's accumulated EP between Mike and Andrea. How much
accumulated EP do they each receive?
Mike:
Andrea:
(c) How much of Mike's distribution will get dividend treatment?
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