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Distributions are only considered income to the extent of the E & P. Class, what is E & P? How do you calculate it? Solution A distribution from a corporation is a dividend to the extent of the corporation’s current year E&P and accumulated E&P of previous years. E&P is earnings and profits is measure of a corporation’s economic ability to pay dividends to its shareholders. It is calculated by making adjustments to taxable income for the year..

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Distributions are only considered income to the extent of the E & P. Class, what is E & P? How do you calculate it? Solution A distribution from a corporation is a dividend to the extent of the corporation’s current year E&P and accumulated E&P of previous years. E&P is earnings and profits is measure of a corporation’s economic ability to pay dividends to its shareholders. It is calculated by making adjustments to taxable income for the year.

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