Chapter $13$ Homework $2024$ed

$1.$ For each rule, determine the character of the distribution.

$($C E&P is current earnings and profits; A E&P is accumulated earnings and profits$)$

Rule $1$ If C E&P and A E&P are both positive,

Rule $2$ If C E&P is positive and A E&P is negative,

Rule $3$ If C E&P is negative and A E&P is positive,

Rule $4$ If C E&P and A E&P are both negative,

$($C E&P$$ is Current Earnings & Profits; $$A E&P$$ is Accumulated Earnings and Profits; RoC is nontaxable return of capital $($up to stock basis$).$