A corporation may make a distribution to its shareholders Depending on the circumstances, in the hands of the shareholder, the distribution can be classified as a dividend, a tax free distribution or a capital gain Explain the circumstances in which each classification can occur

Question: A corporation may make a distribution to its shareholders. Depending on the circumstances, in the hands of the shareholder, the distribution can be classified as

A may make a to its shareholders. Depending on the circumstances, in the hands of the shareholder, the can be classified as a dividend, a tax-free or a capital gain. Explain the circumstances in which each classification can occur.

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