Distributions by a corporation to its shareholders are presumed to be dividends unless the parties can prove otherwise. The ROC dividend is nontaxable to the extent of the shareholder's basis and any excess is treated as capital gain. These accounts are not 4. We are breaking up Retained Earnings based on GAPP to reflect taxable income with certain allowed adjustments to determine how the dividends are taxed to the shareholder.
Account can be positive or negative.
Gain on involuntary conversion 2. Difference between cost depletion and percentage or statutory depletion 3. Intangible drilling costs and mine exploration and development cost 5. Fines and penalties 6. Stock dividends - capitalization 7.