Classify the effect of a distribution in a year when the distributing corporation has the following...

 

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Classify the effect of a distribution in a year when the distributing corporation has the following conditions. a. A deficit in accumulated E & P and a positive amount in current E & P. If a distributing corporation has a deficit in accumulated E & P and a positive amount in current E & P, a distribution during the year is a to the extent of current E& P. b. A positive amount in accumulated E & P and a deficit in current E & P. If the corporation has a positive amount in accumulated E &P and a deficit in current E & P, a distribution either is a depending on the resulting balance in E & P when current and accumulated E & P are netted. c. A deficit in both current and accumulatedE&P. If there is a deficit in both current and accumulated E & P, a corporate distribution is treated as a to the extent of the shareholder's basis in his or her stock. Any excess is a d. A positive amount in both current and accumulated E & P. If there is a positive amount in both current and accumulated E & P, to the extent of the positive balance in both amounts, the distribution is a Classify the effect of a distribution in a year when the distributing corporation has the following conditions. a. A deficit in accumulated E & P and a positive amount in current E & P. If a distributing corporation has a deficit in accumulated E & P and a positive amount in current E & P, a distribution during the year is a to the extent of current E& P. b. A positive amount in accumulated E & P and a deficit in current E & P. If the corporation has a positive amount in accumulated E &P and a deficit in current E & P, a distribution either is a depending on the resulting balance in E & P when current and accumulated E & P are netted. c. A deficit in both current and accumulatedE&P. If there is a deficit in both current and accumulated E & P, a corporate distribution is treated as a to the extent of the shareholder's basis in his or her stock. Any excess is a d. A positive amount in both current and accumulated E & P. If there is a positive amount in both current and accumulated E & P, to the extent of the positive balance in both amounts, the distribution is a

Answer rating: 100% (QA)

1 A deficit in accumulated EP and a positive amount in current EP When current Earning Profit is pos... View the full answer