Question: 1. List the four basic adjustments that a corporation makes to taxable income or net loss to compute current E&P. What is the rationale for

1. List the four basic adjustments that a corporation makes to taxable income or net loss to compute current E&P. What is the rationale for making these adjustments?

2.Amy is the sole shareholder of a corporation. Rather than have the corporation pay her a dividend, Amy decides to have the corporation declare a bonus at year-end and pay her tax-deductible compensation. How does this effect Amys taxes and the corporations taxes?

3.Why would a corporation issue a stock dividend to its shareholders instead of a cash dividend?

4.What effect does a nontaxable stock dividend create for a shareholder?

5.What would cause a stock dividend to be taxable to the recipient?

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