A corporation earns $500,000 of current E&P and has an accumulated deficit of $300,000. The corporation pays a $350,000 distribution to its shareholders this year. $200,000 of the distribution will be taxed as a dividend.
Answer the following statement true (T) or false (F)
False
The full $350,000 distribution is taxed as a dividend because there is at least $350,000 of current E&P.
You might also like to view...
In a(n) ________ international company, foreign operations are viewed as being secondary or subordinate to domestic operations
A) ethnocentric B) concentric C) polycentric D) regiocentric
An extranet might be viewed as connecting _____ of business partners.
A. usenets B. internets C. intranets D. supernets
An auditor determines that there is an inherent risk that dividends may be recorded and paid before being declared. This determination is most likely tied to which of the following management assertions?
a. Completeness. b. Presentation and disclosure. c. Valuation. d. Existence.
Acceptance of a part of any commercial unit is acceptance of the entire unit
Indicate whether the statement is true or false