If a Corporation Has No E&P,a Distribution Is Ordinary Income

question 27

True/False

If a corporation has no E&P,a distribution is ordinary income to the extent of the shareholder's basis with any excess treated as capital gain.

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Definitions:

Nuclear Family

A family unit consisting of two parents and their children (biological or adopted), considered a basic social unit.

Social Structure

The organized pattern of social relationships and social institutions that constitute society.

Short-Term Orientation

A cultural or individual preference for immediate outcomes and gratification, focusing on the present rather than the future.

Future Rewards

pertains to benefits or recognitions that are anticipated in the future as a result of specific actions or behaviors today.