9) Which of the following statements is incorrect? A) A distribution from earnings and profits in excess of stockholder basis is a nontaxable return of capital. B) Distributions paid in excess of earnings and profits are nontaxable to the extent of stockholder basis. C) A distribution of appreciated property creates a gain to the corporation. D) Earnings and profits are conceptually similar to retained earnings. distribution of appreciated property to its 10) Orange Corporation makes a non-liquidating shareholders. A) The shareholders will report a gain. B) The corporation will report a gain. C) The shareholders will report dividend income equal to the basis of the property distributed D) The corporation will report dividend expense equal to the fair value of the property distributed