Question: True or False. A calendar-year corporation has negative current E&P of $100 and accumulated E&P of $100. A cash distribution of $100 to the corporation's

True or False. A calendar-year has negative current E&P of $100 and accumulated E&P of $100. A cash of $100 to the corporation's sole shareholder on June 30 will not be treated as a because total E&P at December 31 is $0. Explain.

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