Which of the Following Statements Is Incorrect

question 111

Multiple Choice

Which of the following statements is incorrect?

• A)A distribution from earnings and profits in excess of stockholder basis is a nontaxable return of capital.
• B)Distributions paid in excess of earnings and profits are nontaxable to the extent of stockholder basis.
• C)A distribution of appreciated property creates a gain to the corporation.
• D)Earnings and profits are conceptually similar to retained earnings.

---

Definitions:

Dehumanization

The process of depriving a person or group of positive human qualities, leading to the perception of them as less than human.

Cross-Categorization

Cross-Categorization is the practice of classifying individuals or items into multiple overlapping categories or groups based on different attributes.

Positive Contact Situations

Interactions in which individuals from different backgrounds or groups come together in a supportive, cooperative environment, leading to reduced prejudice and enhanced relationships.

Cooperation

The process of working together towards the same end or goal, often resulting in mutual benefit.