If the Amount of a Corporate Distribution Is Less Than

question 60

True/False

If the amount of a corporate distribution is less than the amount of the corporate earnings and profits, the return of capital concept does not apply and the shareholders' adjusted basis for the stock remains unchanged.

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Definitions:

Generates Opposition

The process by which actions, ideas, or policies provoke resistance, disagreement, or conflict from individuals or groups.

Capitalist Countries

Nations where trade, industry, and the means of production are largely or entirely controlled by private owners with the goal of generating profits.

Core

The central or most important part of something, especially the foundational or essential parts that define its nature.

Major Sources

Principal or most important origins or points of supply, typically referring to information, materials, or resources.