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If a C Corporation Has Earnings and Profits at Least

question 84

True/False

If a C corporation has earnings and profits at least equal to the amount of a distribution, the tax consequences to the shareholders are the same regardless of whether the distribution is classified as a dividend or as a stock redemption.


Definitions:

Great Migration

The movement of over six million African Americans from the rural Southern United States to the urban Northeast, Midwest, and West from about 1916 to 1970, seeking better economic opportunities and escaping racial discrimination.

Economic Devastation

A situation in which a significant event, such as a natural disaster or financial crisis, severely disrupts and damages an economy.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Paris Peace Conference

The gathering of Allied Nations after World War I, in 1919, to set the peace terms for the defeated Central Powers and to reshape the map of Europe and the world.

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