Assume a calendar-year corporation has a deficit in current E&P of ($120) and positive beginning accumulated E&P

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Assume a calendar-year corporation has a deficit in current E&P of ($120) and positive beginning accumulated E&P of $120. Under this circumstance, a cash distribution of $120 to the corporation’s sole shareholder on June 30 will not be treated as a dividend because total E&P at December 31 is $0. True or false? Explain.

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Taxation Of Individuals And Business Entities 2021

ISBN: 9781260247138

12th Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

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