Cactus does not make any distributions during 2008 but had, Ask an Expert

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Cactus Corporation, an S Corporation, had accumulated earnings and profits of $100,000 at the beginning of 2008. Tex and Shirley each own 50% of the stock. Cactus does not make any distributions during 2008, but had $200,000 of ordinary income. In 2009, ordinary income was $100,000 and distributions were $100,000. What is Tex's ordinary income for 2009?

a.$0.

b.$50,000

c.$100,000

d.$200,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9411595

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