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    Federal Taxation
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    Exam 19: Corporations: Distributions Not in Complete Liquidation
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    When Current E & P Has a Deficit and Accumulated
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When Current E & P Has a Deficit and Accumulated

Question 87

Question 87

True/False

When current E & P has a deficit and accumulated E & P is positive, the two accounts are netted at the date of the distribution. If a positive balance results, the distribution is a dividend to the extent of the balance.

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