‘S’ Corporation Distribution and Taxation

"S Corporation Distributions and Taxation" Please respond to the following:
•	From the e-Activity, differentiate between the treatment of S corporation distributions from corporations having no earnings and profits, and corporations having accumulated earnings and profits. Suggest the most significant reason for the difference in the treatment of distributions. Justify your response.
•	Per the text, Last In, First Out (LIFO) recapture tax and built-in gains tax are applied to S corporations at the corporate level. Create a tax-planning strategy to prevent the S corporation from the payment of these taxes.

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