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.

http://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.