On January 1 of the current year, Rhondell Corporation has accumulated E & P of $98,000....

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On January 1 of the current year, Rhondell Corporation has accumulated E & P of $98,000. Current E&P for the year is $294,000

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Answer 1

Answer #1

Particular	Amount
Accumulated E & P	$ 98,000.00
Current E & P	$ 294,000.00
Total E & P	$ 392,000.00

Particular	Amount	Percentage
30-Apr	$ 156,800.00	36.36%
31-Dec	$ 274,400.00	63.64%
Total Distribution	$ 431,200.00	100.00%


Particular	From Current E & P	From Accumulated E & P	Treated as return of Capital
	[A]	[B] = Distribution -[A]
April 30 distribution of $ 156,800	$ 106,898.00	$ 49,902.00	0
December 31 distribution of $ 274,400	$ 187,102.00	$ 87,298.00	$ 39,200.00

**Treated as Return of Capital = $ 431,200 - $ 392,000 = $ 39,200

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