Red Corporation has taxable income before DRD of $174,000. Included in that amount is dividend of $20,000 from a large publicly-traded domestic corporation. Red also made a $25,000 cash contribution to a qualified charitable organization. The contribution is not included in the net income amount given. What is taxable income of Red Corporation? $135,000 $140, 600 $142,000 $142, 600 Which of the following statements is INCORRECT? A distribution from earnings and profits in excess stockholder basis is a nontaxable return of capital Distributions paid in excess of earnings and profits are nontaxable to the extent of stockholder basis A distribution of appreciated property creates a gain to the corporation Earnings and profits are conceptually similar to retained earnings