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Hannah's Construction, Inc. ws organized as a C Corporation on January 1,2023. During the year, the company distributed $60,000 in shareholder dividends. Choose the response
Hannah's Construction, Inc. ws organized as a C Corporation on January 1,2023. During the year, the company distributed $60,000 in shareholder dividends. Choose the response that accurately describes the consequences of this distribution. Hannah's construction will: A. Increase its earnings and profits by the amount distributed B. Include the distribution in taxable income subject to the 21% corporate income tax rate C. Recognize a capital gain on the distribution D. Reduce taxable income by the total $60,000 distibuted
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