Badger corporation was incorporated in the cur- rent year, Financial Management

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Badger corporation was incorporated in the cur- rent year

Badger Corporation was incorporated in the cur- rent year. It reports an $8,000 NOL on its initial tax return. Badger distributes $2,500 to its share- holders. Is it possible for this distribution to be taxed as a dividend to Badger’s shareholders? Explain.

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Financial Management: Badger corporation was incorporated in the cur- rent year

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