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Acc 455 Week 3 DQ

Wk 3 DQ’s

How does a corporation compute earnings and profits (E&P)? What income is deferred to a later year when computing taxable income but is included in E&P in the current year? What deductions are allowed for taxable income purposes but denied for E&P?

What income is deferred to a later year when computing taxable income but is included in E&P in the current year?

What deductions are allowed for taxable income purposes but denied for E&P?

Distinguish between current and accumulated earnings and profits. Why is it important to make this distinction?

What is a stock redemption? What are some reasons for redeeming stock? Why are some redemption treated as sales and others as dividends?

 

 

 

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