1. Original Issue Discount is a form of interest on debt instruments. You generally include OID in your income when the associated debt instrument is sold, whether or not you receive any payments from the issuer.

2. If the disposition of a foreign currency-denominated debt instrument consists of both gain on currency exchange and overall economic gain, the gain will be recognized as ordinary, up to the amount of the exchange gain.

3. To the extent that a cash distribution from a corporation to its shareholder exceeds the corporation's current or accumulated earnings & profits, it will be characterized as a dividend in the hands of the shareholder.

T/F ?