Complete the following. When a deficit exists in current E &…

Complete the following. When a deficit exists in current E & P and a positive balance exists in accumulated E & P, the accounts ________ netted at the date of distribution. If the balance is __________, the distribution is a return of capital. If the balance is _________, the distribution is a dividend to the extent of the balance.

Orange Corporation distributes $200,000 in noncash property…

Orange Corporation distributes $200,000 in noncash property to each of its three shareholders: Sandy, Byron, and Fuchsia Corporation. When determining how the distribution is treated for tax purposes by Orange Corporation, which of the following factors should be considered?

Complete the following. When a deficit exists in current E &…

Complete the following. When a deficit exists in current E & P and a positive balance exists in accumulated E & P, the accounts ________ netted at the date of distribution. If the balance is __________, the distribution is a return of capital. If the balance is _________, the distribution is a dividend to the extent of the balance.