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# Nonliquidating Distribution

1.Deficit in accumulated E&P is \$(20,000)
Current E&P is \$15,000
On 12/31/x1, the Corp distributed \$50,000 to its sole SH
How much is considered to be dividend?

2. Accumulated E&P is \$15,000
Deficit in current E&P \$(20,000)
On 12/31/x1, the Corp distributed \$50,000 to its sole SH
How much is considered to be dividend?

3. Accumulated E&P is \$15,000
Deficit in current E&P \$(20,000)
On 12/31/x1, the Corp distributed \$50,000 to its sole SH
A current deficit is treated as happening evenly throughout the year, about when would the AE&P run out?
Is there any E&P left on 12/31?

4. Accumulated E&P is \$15,000
Deficit in current E&P \$(20,000)
What if the distribution date changes to 6/30?

#### Solution Preview

Case 1
\$15,000 is considered to be the dividend which is equal to the current E&P

Case 2
No portion of the distribution is considered dividend because the ...

#### Solution Summary

This solution provides an analysis of each case and comments on the dividends, distribution, accumulated E&P and changes in dividends.

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