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Which of the following statements regarding corporate earnings and profits (E&P) is correct? Question 15 options: a. Current E&P is the same as taxable income.

Which of the following statements regarding corporate earnings and profits (E&P) is correct?

Question 15 options:

a. Current E&P is the same as taxable income.

b. Negative E&P occurs when a distribution to the shareholder is larger than the balance in current E&P.

c. If current E&P is positive and accumulated E&P is negative, you net the two amounts to determine whether the distribution to the shareholder will be treated as a dividend.

d. For tax purposes, a dividend is defined as a distribution out of corporate E&P to the shareholder.

Both c. and d.

None of the above.

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