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The calculation of earnings and profits is used primarily to determine, which of the following: a. long term gain b. amount of the dividends c. taxability of dividends d. taxability of future distributions e. if there is a return of basis You are trying to determine if IRC 318 applies to your client. Tell your client which of following do NOT get included. (Incorrect answers will count against your correct answers) (multiple answers possible) a. step-son b. adopted child c. spouse d. partnership that there is ownership percentage of less, than 5% e. grandchild f. brother g. sister h. grandparent