You are reviewing a corporation's financial statements and observe that the income tax expense has two components a current portion and a deferred portion. Explain which component appears on the corporation's tax form and why there are two components presented in the financial statements. 2- There are several types of non liquidating distributions a corporation can make. Discuss two non liquidating distributions, explaining their tax effects on the corporation and the shareholder.

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1 Income Tax Expense Components Current Portion This component represents the income tax expense for the current financial period and is the amount of tax payable on the corporations taxable income fo... View the full answer