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Congo Corporation which has an E \& P deficit of $540.000 merges with Paris Corporation which has a positive E \& P of $860,000. The merger cccurs on March 31 of the current year, On October 31 of the current year. Paris distributes $600,000 to the sharehoiders. There is tho current E8P How is the distribution taxed to the shareholders? Selected Answer: Answers: $60,000 taxed as a dividend and $540,000 treated as return of capital. $540,000 taxed as a dividend and $60,000 treated as roturn of capital $800000 taxed as a dividend $60,000 taxed as a dividend and $540,000 treated as return of capital