How does the tax code define a dividend

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Reference no: EM131337675

TAX HOMEWORK

1. How does the Tax Code define a dividend?

2. How does the Tax Code define earnings and profits?

3. Explain how a corporate distribution to a shareholder is impacted in the following cases:

• The distributing corporation has sufficient current and accumulated earnings and profits to cover the distribution amount.

• The distributing corporation has sufficient current and accumulated earnings and profits to cover one-half of the distribution amount.

• The distributing corporation has no current and accumulated earnings and profits to cover any of the distribution amount and the distribution amount exceeds the shareholders stock basis.

Reference no: EM131337675

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