A shareholder receives a distribution from a corporation in complete liquidation.The distribution will be taxed as a dividend to the extent of current or accumulated E&P.

Name: A shareholder receives a distribution from a corporation in complete liquidation.The distribution will be taxed as a dividend to the extent of current or accumulated E&P.
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Question

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In a complete liquidation, distributions are generally treated as a sale of stock, resulting in capital gain or loss, not as dividends.

A Shareholder Receives a Distribution from a Corporation in Complete