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Which of the following statements is incorrect? Multiple Choice A distribution from earnings and profits in excess of stockholder basis is a nontaxable return of

Which of the following statements is incorrect?
Multiple Choice
A distribution from earnings and profits in excess of 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.
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