A dividend is defined as any distribution of property made by a corporation out of Earnings & Profits accumulated after February 28, 1913 or Earnings & Profits of the current taxable year. Corporation X has accumulated EGP deficit of $(650,000) and current year EGP in the amount of $600,000. A pro-rata distribution on December 31 of the current year in the amount of $100,000 will be fully taxed as a dividend to its shareholders: a. True b. False For Questions 50 through 52 assume the following: Corporation X has deficit accumulated EGP as of December 31, 2014 of $(30,000). During the 2015 tax year, Corp X has taxable earnings $32,000. It has no E&P adjustments under Section 312 other than income taxes. On January 1, 2016 Corp X makes a distribution to its sole shareholder Albert, an individual, of Land with a fair market value of $10,000 and an adjusted basis of $5,000. Corp X has an effective tax rate of 20% for all years and has no tax attribute carryovers. 50. Based on the above facts, the amount taxable as a dividend to shareholder under IRC Section 301 is: a. $10,000 b. $ 5,000 c. $ 4,000 d. S-0- 51. Using the same facts as the above question, Albert's basis in the land is most likely: a. $5,000 b. $4,000 c. $9,000 d. $10,000 52. Under the same fact pattern, Corporation X's accumulated deficit E&P following the distribution is: a. $(20,400) b. $(16,400) c. $(14,400) d. $(18,400) nat nommaa e. None of the Above 53. Corporation Z has current year earnings and profits, a distribution in the current year will always be taxable as dividend to its shareholders? a. True b. False A 11 Page