In order to shift the taxation of dividend income from a parent to a child

A. the parent must transfer ownership of the stock to the child.
B. the parent must direct the corporation to pay the dividend to the child.
C. the parent can deposit the dividend in the child's bank account.
D. all of the above will result in shifting the taxation to the child.


Answer: A

Business

You might also like to view...

Trade accounts payable (or accounts payable) are amounts owed to suppliers for products or services purchased on credit.

Answer the following statement true (T) or false (F)

Business

Translating a message from its symbol form into meaning involves encoding

Indicate whether the statement is true or false

Business

Kiana can be described as "a reasonably competent general practitioner of ordinary skill, experience, and capacity." This is the normal standard for judging the performance of A) any individual

B) an accountant. C) an attorney. D) a tax preparer.

Business

Assume that Omicron uses the entire $50 million to repurchase shares. The number of shares that Omicron will repurchase is closest to ________

Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicron's unlevered cost of capital is 8% and there are 10 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock. A) 0.73 million B) 1.09 million C) 0.9 million D) 1.82 million

Business