Roy receives a nonliquidating distribution from Ageless Corporation. Which of the following statements concerning nonliquidating distributions from a corporation are correct?
I.A nonliquidating cash distribution is taxable if the distribution comes from the corporation's current or accumulated earnings and profits.II.The amount of the dividend on a nonliquidating distribution of property is the basis of the property distributed.?
A. Only statement I is correct.
B. Only statement II is correct.
C. Both statements are correct.
D. None of the statements are correct.
Answer: A
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