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    Taxation of Business Entities
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    Exam 7: Corporate Taxation: Nonliquidating Distributions
  5. Question
    Green Corporation Has Current E&P of $100,000 and a Deficit
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Green Corporation Has Current E&P of $100,000 and a Deficit

Question 99

Question 99

True/False

Green Corporation has current E&P of $100,000 and a deficit in accumulated E&P of ($200,000). A $50,000 distribution from Green to its sole shareholder will not be treated as a dividend because total E&P is a deficit ($100,000).

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