Question 1
A corporation earns $500,000 of current E&P and has an accumulated deficit of $300,000. The corporation pays a $350,000 distribution to its shareholders this year. $200,000 of the distribution will be taxed as a dividend.
◦ true
◦ false
Question 2
A corporation's E&P is equal to its taxable income for the year.
◦ true
◦ false