A corporation may make a distribution to its shareholders Depending on the circumstances, in the hands of the shareholder, the distribution can be classified as a dividend, a tax free distribution or a capital gain Explain the circumstances in which each classification can occur ...

If the corporation has earnings profits EP and the distribution is equal to or ...

A corporation may make a distribution to its shareholders. Depending on the circumstances, in the hands of

Question:

A may make a to its shareholders. Depending on the circumstances, in the hands of the shareholder, the can be classified as a dividend, a tax-free or a capital gain. Explain the circumstances in which each classification can occur.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...