Which of the following statements regarding constructive dividends is not correct? a. Corporations that receive constructive dividends may not use the dividends received deduction. b. Constructive dividends do not need to be formally declared or designated as a dividend. c. Constructive dividends need not be paid pro rata to the shareholders. d. Constructive dividends are taxable as dividends only to the extent of earnings and profits.

d. Constructive dividends are taxable as dividends only to the extent of earnings and profits.