A calendar-year corporation has positive current E&P of $500,000 and accumulated negative E&P of $1,200,000. The corporation makes a $400,000 distribution to its sole shareholder. Which of the following statements is true?

a. A distribution from a corporation to a shareholder is always a dividend, regardless of the balance in earnings and profits. b. The distribution will be a dividend because current earnings and profits are positive and exceed the distribution. c. The distribution may be a dividend, depending on whether total earnings and profits at the date of the distribution is positive. d. The distribution will not be a dividend because total earnings and profits is a negative $700.

For tax year 2019, Ontario Corporation had a taxable income of $80,000 before using any of its net operating loss from 2018. Ontario never elected to forgo the carryback of any of its losses since its incorporation in 2014. Ontario's books and records reflect the following income (loss) since its incorporation:

2016 30,000

2017 35,000

2018 (50,000)

Which of the following items is a separately stated item for a partnership?

a. Charitable contributions made by the partnership.

b. Interest expense.

c. Depreciation.

d. Prepaid rent.

What is the amount of taxable income Ontario Corporation should report on its 2019 tax return, after any allowed deduction for a carryforward NOL?

a. $64,000

b. $16,000

c. $30,000

d. $80,000