Write Answer of following questions in at least 200 words each.
Questions:
1. Can you discuss how to compute earnings and profits (E&P)?
What income is deferred to a later year when computing taxable income, but is included in E&P in the current year?
What deductions are allowed for taxable income purposes, but denied for E&P?
2. Please review the following article. Take note on the decision on what the company plans to do to fund the payments and why, then provide us a summary including whether you agree or disagree.
https://www.thedailybeast.com/articles/2013/04/24/apple-stimulates-economy-through-dividends-and-stock-buybacks.html
3. What is the difference between liquidating and nonliquidating distributions?
4. How are gains and losses booked?
5. Discuss voluntary and involuntary termination of an S corporation.
6. Let's discuss partnerships. Discuss Basis and why it is important to understand.