Question: 2. All distributions that are not dividends are a return of capital and decrease the shareholders basis. a. True b. False 3. A distribution from

2. All distributions that are not dividends are a return of capital and decrease the shareholders basis. a. True b. False

3. A distribution from a corporation will be taxable to the recipient shareholders only to the extent of the corporations E & P. a. True b. False

4. All cash distributions received from a corporation with a positive balance in accumulated E & P at the beginning of the year will be taxed as dividend income. a. True b. False

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