E&P issues/adjustments arising in connection with bankruptcy. (earnings and profits): An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on November 1, 1993. The length of the article is 1748 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Entities emerging from bankruptcy should be aware of the laws regarding the calculation of earnings and profits (E/P) for organizations that have declared bankruptcy. In leveraged buyout situations where the target carries significant debt a reduction in E/P will be recognized at the closing of the acquisition. E/P is only recognized if it is not applied to reduce the tax basis of the organization. Any money owed to shareholders at the time of bankruptcy is also subtracted from E/P calculations. Other situations relevant to the issue are discussed.

Citation Details
Title: E&P issues/adjustments arising in connection with bankruptcy. (earnings and profits)
Author: David W. Blair
Publication:The Tax Adviser (Magazine/Journal)
Date: November 1, 1993
Publisher: American Institute of CPA's
Volume: 24 Issue: n11 Page: 709(4)

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