Distributions in Excess of a Corporation's Current and Accumulated Earnings

question 70

True/False

Distributions in excess of a corporation's current and accumulated earnings and profits are treated as a nontaxable recovery of capital unless they exceed the basis of the stock.

---

Definitions:

Negative Reinforcement

A reinforcement contingency through which behaviors are followed by the removal of previously experienced negative consequences, resulting in the likelihood that the behavior will occur again in the same or similar situations.

Positive Reinforcement

A reinforcement contingency through which behaviors followed by positive consequences, are more likely to occur again in the same or similar situations.

Negative Punishment

A behavioral psychology concept where reducing or taking away a desirable stimulus decreases the likelihood of a behavior recurring.

Positive Reinforcement

A motivational technique involving the addition of a reward following a desired behavior, aiming to increase the likelihood of the behavior being repeated.