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[LO1] What is meant by the term double taxation of corporate income? [LO1] How does the issue of double taxation arise when a corporation decides between making a distribution to a shareholder employee as a dividend or compensation? [LO1] Why might a shareholder who is also an employee prefer receiving a dividend instead of compensation from a corporation? [LO2] What are the three potential tax treatments of a cash distribution to a shareholder? A calendar-year corporation has negative current E&P of 0 and accumulated E&P of 0. [LO2] List the four basic adjustments that a corporation makes to taxable income or net loss to compute current E&P.
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