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?

$200,000

Explanation:

In the given case, The distribution which is treated as a dividend is equal to the current E&P i.e $200,000 because the distributions are paid first by current E&P and when it is consumed then the balance of accumulated E&P got reduced.

So, it also consider the current E&P as a dividend

All other information which is given is not relevant. Hence, ignored it

answerpurchase-occasion segmentation;