C. 75% of Y. D. 80% of Y. 23 Which of the following statements about earnings and profits (E&P) is false? A corporation can make taxable dividend distributions if it has current E&P, notwithstanding the fact that it may have a deficit in accumulated E&P O A. B. A dividend is defined as paid out of either current or accumulated E&P. O C. E&P consists of two basic parts: current E&P and accumulated E&P. The presumption is that every distribution is first made out of accumulated E&P and then from current E&P. O D. Ir. Wilson transferred a building with an FMV of $90,000 to D Corp. in exchange for 95% of its outstandin ommon stock. The building had an adjusted basis to Mr. Wilson of $56,000. What is Mr. Wilson's basis in tock received? C. 75% of Y. D. 80% of Y. 23 Which of the following statements about earnings and profits (E&P) is false? A corporation can make taxable dividend distributions if it has current E&P, notwithstanding the fact that it may have a deficit in accumulated E&P O A. B. A dividend is defined as paid out of either current or accumulated E&P. O C. E&P consists of two basic parts: current E&P and accumulated E&P. The presumption is that every distribution is first made out of accumulated E&P and then from current E&P. O D. Ir. Wilson transferred a building with an FMV of $90,000 to D Corp. in exchange for 95% of its outstandin ommon stock. The building had an adjusted basis to Mr. Wilson of $56,000. What is Mr. Wilson's basis in tock received