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Difference between current and accumulated profits & earning

How do current earnings and profits differ from accumulated earnings and profits? Is there any reason to keep the two accounts separate? How does a corporation's computation of earnings and profits?

How do current earnings and profits differ from accumulated earnings and profits? Is there any reason to keep the two accounts separate? How does a corporation's computation of earnings and profits differ based on the tax treatment of a stock redemption as a dividend as opposed to an exchange?

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Jingying Zhou, MA (IP)

Rating 4.8/5

Active since 2010

BA, Fudan University
MA (IP), University of Michigan

Responses 349


Comments on Jingying's work:

"Hello YOY % percent means Year over year and also I am unable to view it says I don't have auth to view the file."

"Thanks. I really appreciate your help."

"Hi! I am not entirely sure how the table was constructed. What equations were used to find NPV, payback, PI, and IRR? Thank you! Wonderful job. :) I just needed to deconstruct it and study it for the exam and the core equations would help tremendously."

"Thank you for your assistance."

"You are good at what you do but some more explanation would have been greatly appreciated."