Question 9 3 Corporation has a deficit in accumulated and current earnings and protis Despite its history of recent losses, B Corporation expects operations to become profitable next year. Assuming that the corporation plans to make a distribution, timing is critical because: Bon (1) and (2) Olla distribution in the current year would first be treated as a nontaxable meturn of capital to the extent of the shareholders' basis of the stock. o la distribution in the following year would be taxable as a dividend to the edent of the corporation's current earnings and profits in that year