Identify which of the following statements is false.
A) Adjustments to taxable income when computing E&P do not include tax- exempt interest.
B) At formation, a corporation's E&P depends on the amount of capital contributed by the shareholders.
C) For E&P dividend distribution purposes, property as defined in Sec. 317(a) includes money.
D) The function of E&P is to provide a measure of a corporation's economic ability to pay dividends.
Correct Answer:
Verified
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