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hello and welcome to the session in which we would look at the S distribution so what happened when the S corporation distribute assets such as cash or or property okay so let's take a look at the general rules for the C corporation first so we're going to go back and it's worth looking back at the C corporation why because a few weary if we know how the C corporation work it's gonna be easier for us to understand the S corporation because we already learned about the C Corp distribution so what did we learn about the C chord distribution what we learned is this first we had if we have current earnings and profits if we have current earnings and profit what's gonna happen is this any distribution any distribution to the extent of earning and profit is considered dividend hopefully you remember this so this is starting with the C corporation then if the distribution is counted from accumulated earnings and profit from accumulated earnings and profit that's also considered a dividend so

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