Which of the following statements about earnings and profits (E&P) is false? A corporation can make taxable dividend distributions if it has current E&P, notwithstanding the fact that it may have a deficit in accumulated E&P B. A dividend is defined as paid out of either current or accumulated E&P. C. E&P consists of two basic parts: current E&P and accumulated E&P. The presumption is that every distribution is first made out of accumulated E&P and then from current E&P. D. Exam, Question Q 9 94% Complete