Assertion (A): When a company earns profit prior to its incorporation, it is called capital profit
Reason (R): Capital profit cannot be used for distribution as dividend to the shareholders.
In the context of the above two statements, which one of the following is correct?
(A) is correct, but (R) is wrong
Both (A) and (R) are correct
(A) is wrong, but (R) is correct
Both (A) and (R) are wrong