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If a corporation has significant accumulated E&P but no current E&P shareholder distributions are first treated as a tax-free return of capital that reduces the

If a corporation has significant accumulated E&P but no current E&P shareholder distributions are first treated as a tax-free return of capital that reduces the shareholder's basis in his/her stock, with the excess treated as a gain from a sale or exchange of stock, generally capital gain if the shareholder holds the stock as a capital asset. true or false?

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