The sale of § 306 stock generally results in dividend income to the shareholder and a reduction in the corporation's E & P.

Name: The sale of § 306 stock generally results in dividend income to the shareholder and a reduction in the corporation's E & P.
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Question

Quizplus · Accepted Answer

The sale of § 306 stock generally results in capital gain or loss to the shareholder, not dividend income, and does not affect the corporation's Earnings and Profits (E & P).

The Sale of § 306 Stock Generally Results in Dividend