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LSDefine

Simple English definitions for legal terms

earnings and profits

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A quick definition of earnings and profits:

Earnings and profits refer to a measure of a corporation's ability to distribute profits to shareholders as dividends, without it being considered a return of capital. This means that the distribution will be considered as income for the shareholders, up to the amount of the corporation's current and accumulated earnings and profits. Essentially, it is a way to determine how much money a corporation can pay out to its shareholders as dividends.

A more thorough explanation:

Definition: Earnings and profits refer to a corporation's economic capacity to make a shareholder distribution that is not a return of capital. In other words, it is the measure of a corporation's ability to pay dividends to its shareholders.

Example: If a corporation has $100,000 in earnings and profits, it can distribute up to $100,000 in dividends to its shareholders without dipping into its capital reserves.

Explanation: This means that the corporation has generated profits that can be distributed to shareholders as dividends. The earnings and profits are calculated by subtracting the corporation's expenses from its revenue. If the resulting amount is positive, it is considered earnings and profits. This money can be used to pay dividends to shareholders, which is a way for them to earn a return on their investment in the corporation.

earnings | earnings excluding special items

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awman i was hopign to come home to a ucla wave
is it too late? its 2pm there
OMG U MEAN A NEW ALBUM OMGG NOW I CAN BE DISTRACTED AGAIN
shaquilleoatmeal
17:14
Nah not a Garmin, Apple watch
We not gonna see splitterus for 4 hrs
HAHAHAHHA
MRS CLITTERUS
JumpySubsequentDolphin
17:17
I’ve barely gotten through chromakopia I can’t deal with another album drop rn
JumpySubsequentDolphin
17:17
this is so stressful
wait but actually is there no wave today
i dont really like chromakopia that much i also havent gotten thru it
JumpySubsequentDolphin
17:18
idk splitty :(
if there's no gtown today that would be so cruel
surely gtown 12 minutes from now
I'm a chromokopia fan, but I don't like Tyler outside of that album
theres the spirit!!
JumpySubsequentDolphin
17:18
@SplitterusClitterus: did you like cmiygl? that’s one of my all time fave albums
Kind of a controversial take. I like experimental albums a lot
babycat
17:19
liking chromakopia and not Tyler's other stuff is crazy to me
JumpySubsequentDolphin
17:19
perhaps im biased bc i saw him live when he performed cmiygl for the first time
i think it is a controverisal take and i usually do too, i also think im giving an opinion too early cuz i habvent finished it at all
yeah seeing him live prob makes it a million times better
Thought I was dead is great raps
2024 such a great year for rap
JumpySubsequentDolphin
17:21
i like noid
even outside the beef. Noid is great too
JumpySubsequentDolphin
17:22
boogies album was the worst ever
JumpySubsequentDolphin
17:22
and i LOVE boogie
JumpySubsequentDolphin
17:23
like i would do anything for one chance w that man but better off alone and me vs myself were both not good
He's never really been my style tbh
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