Complete each statement below regarding the impact each of the following has on generating or adding to a deficit in E & P$.$

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a$.$ The distribution of a property dividend, where the basis of the property exceeds its fair market value.

In general, the payment of dividends $($property or cash$)$

generate and

add to a deficit in E & P$.$

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b$.$ An operating loss of the corporation.

An operating loss of the corporation

generate and

add to a deficit in E & P$.$