Classify the effect of a distribution in a year when the distributing corporation has the following conditions.
a A deficit in accumulated E & P and a positive amount in current E & P
If a distributing corporation has a deficit in accumulated E & P and a positive amount in current E & P a distribution during the year is a
to the extent of current E & P Current and accumulated E & P
netted.
b A positive amount in accumulated E & P and a deficit in current E & P
If the corporation has a positive amount in accumulated E & P and a deficit in current E & P a distribution either is a
depending on the resulting balance in E & P when current and accumulated E & P are netted.
c A deficit in both current and accumulated E & P
If there is a deficit in both current and accumulated E & P a corporate distribution is treated as a
to the extent of the shareholder's basis in his or her stock. Any excess is a
d A positive amount in both current and accumulated E & P
If there is a positive amount in both current and accumulated E & P to the extent of the positive balance in both amounts, the distribution is a
