Chicago Corp., a calendar-year C corporation, had accumulated earnings and profits of $100,000 as of January 1, 2014 and had a DEFICIT in its current earnings and profits for the entire 2014 tax year in the amount of $140,000. Chicago Corp. distributed $30,000 cash to its shareholders on December 31, 2014. What would be the balance of Chicago Corp.'s accumulated earnings and profits as of January 1, 2015?
a. $0
b. $(30,000)
c. $(40,000)
d. $(70,000)
Answer: C
Tax
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