Which of the following statements regarding constructive dividends is not correct? a. Constructive dividends do not need to be formally declared or designated as adividend b. Constructive dividends need not be paid pro rata to the shareholders. c. Corporate shareholders that receive constructive dividends may not use the dividendsreceived deduction. d. Constructive dividends are taxable as dividends

It is the tax deduction on dividends received by a corporation from other corporations in which the…

Answered: Which of the following statements…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter6: Corporations: Redemptions And Liquidations

Section: Chapter Questions

Problem 3BCRQ

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Similar questions

Dividends are not taxable because these earnings have already been taxed to the corporation.
A corporation may not deduct dividends paid to shareholders but is permitted to deduct reasonable compensation? True or False
Recipients of a distributions under IRC Section 302(b)(3) are eligible for capital gain treatment only if the distributing corporation does not have earnings and profits. True or False Explanation
Dividends Tax is a tax on the shareholder and it will not form part of the entities tax expense Select one: O True O False
A corporate shareholder who receives a constructive dividend cannot apply a dividendsreceived deduction to the distribution. • True O False
Dividends received by a domestic corporation from shares in another domestic corporation are exempt from income tax. Group of answer choices True False
True or False. Answer please. S1 - During liquidation, the transfer of properties by dissolving corporation to its stockholders by way of liquidating dividend is subject to income tax. S2 - A stock dividend representing transfer of surplus to capital account shall not be taxable.
Double taxation of corporate income results because dividend distributions are included in a shareholder’s gross income, but are not deductible by the corporation. True False
Which of the following statements is true? O Interest on bonds is not tax deductible O Interest on bonds is tax deductible O Dividends to stockholders are tax deductible O Bonds do not have to be repaid
A corporation that claims the dividends received deduction may completely or only partly avoid any tax on the dividends involved. What accounts for the difference in tax consequences
1. Which of the following differences would result in future taxable amounts? a. Revenues or gains that are taxable before they are recognized in financial income. b. Expenses or losses that are deductible after they are recognized in financial income. c. Expenses or losses that are deductible before they are recognized in financial income. d. Revenues or gains that are recognized in financial income but are never included in taxable income. 2. If a company constructs a laboratory building to be used as a research and development facility, the cost of the laboratory building is matched against earnings as a. research and development expense in the period(s) of construction. b. depreciation deducted as part of research and development costs. c. depreciation or immediate write-off depending on company policy. d. an expense at such time as productive research and development has been obtained from the facility. 3. How should research and development costs be accounted for, according…
The dividend is not a legal liability until the board of directors has declared it. true or false. Explain why?

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