Which of the Following Statements Is Correct

question 43

Multiple Choice

Which of the following statements is correct?

• A)Distributions paid in excess of earnings and profits are taxable to the extent of stockholder basis.
• B)Distributions of appreciated property create a gain to the stockholder recipient.
• C)A distribution from earnings and profits is a dividend.
• D)Earnings and profits are exactly the same as retained earnings.

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Definitions:

Direction

In electrical and electronic contexts, direction can refer to the path in which current flows or the orientation of a magnetic or electric field.

Valence Electrons

Electrons located in the outer orbit of an atom.

Maximum Number

The highest value in a given set or range.

Matter

Anything that occupies space.