Question: The company for which you work is contemplating either non-liquidating or liquidating distributions to its shareholders. As the tax accountant, you have been asked for

The company for which you work is contemplating either non-liquidating or liquidating distributions to its shareholders. As the tax accountant, you have been asked for your advice.

1. Which type of distribution would you advise the companyto execute?

2. Provide your reasons for this advice and discuss the taximplications.

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