Corporation A owns 15 percent of the stock of corporation B. Corporation B pays corporation A $100,000 in dividends in 2002. Corporation A must pay tax on ________

A) $100,000 of ordinary income
B) $ 30,000 of ordinary income
C) $ 70,000 of ordinary income
D) $ 70,000 of capital gain


B

Business

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Indicate whether the statement is true or false

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Respond to the following: a. What is the decision usefulness approach to accounting theory? b. What are the characteristics and limitations of the decision-model approach? c. What are the characteristics of the decision-maker approach?

What will be an ideal response?

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________ is liability without fault.

A. Res ipsa loquitur B. Negligence per se C. Proximate cause D. Strict liability

Business

A "periodic rate cap"

A) reflects current credit conditions in the home loan market and is set by the Home Loan Board. B) reflects current credit conditions in the home loan market and is set according to the National Contract Rate. C) limits interest rate changes on a home mortgage during any one adjustment period. D) is set by the lender on all fixed-rate mortgages.

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