nope. earnings and profits is exactly as it sounds. earnings and/or profits. but they can come from investments such as dividends and interest income. Not the investments themselves.
this can raise some interesting issues for C-Corps but not S-Corps. the common issues for a C-Corp is personal holding company status (Section 543) or accumulation of excess earnings and profits (Section 531)
E&P really refers to the ability to pay dividends. E&P is not defined in the code.
you might what to see the first video at this link.
https://video.search.yahoo.com/search/video?fr=mcafee&p=is+there+a+formula+for+determining+reasonabl...
