Oreo corporation has accumulated e& p of $8,000 at the beginning of the current year. during the year (a nonleap year), the corporation incurs a current e& p deficit of$18,250. the corporation distributes $11,000 on march 20th to morris, its sole shareholder, who has a $9,000 basis for his stock. if the exact loss cannot be determined as of the date of distribution, the treatment of the distribution will bea.$11,000 return of capital. b.$4,100 dividend and a $6,900 capital gain. c.$8,000 dividend and a $3,000 return of capital. d.$4,100 dividend and a $6,900 tax free return of capita

Depreciation on the company's equipment for 2017 is computed to be $18,000.the prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains.the office supplies account had a $700 debit balance on december 31, 2016; and $3,480 of office supplies were purchased during the year. the december 31, 2017, physical count showed $300 of supplies available.two-thirds of the work related to $15,000 of cash received in advance was performed this period.the prepaid insurance account had a $6,800 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of insurance policies showed that $5,800 of coverage had expired.wage expenses of $3,200 have been incurred but are not paid as of december 31, 2017.