The computation of earnings and profits can only include expenditures that are deductible. t-f?

Z Corporation uses a net capital loss carryover from the prior year to offset current year capital gains. The net capital loss carryover used in the current year will reduce current earnings and profits. t-f?

M Corporation distributes appreciated property to its shareholder as a dividend. M Corporation will recognize the gain on the distribution of the property and include the gain in taxable income. t-f?

M Corporation distributes property with a value of $100 and an adjusted basis of $150 to its shareholder as a dividend. M Corporation will realize a $50 loss on the distribution of the property, but M will not be able to deduct this loss in computing taxable income. t-f?