Ask Question
5 December, 02:38

Shareholder of c corporation receiving property distribution must recognize dividend income equal to the fair market value of the distributed property if the distribution corporation has sufficient earning and profit. True / False.

+5
Answers (1)
  1. 5 December, 05:30
    0
    True

    Explanation:

    The dividends to be recognized are always for the amount they are given in cash, but in case of property dividends, the dividends are to be recognized at fair value of the property distributed.

    This is in accordance with GAAP.

    There is no recognition based on book value or carrying value of the property distributed as do not represent the net exchange value of the property.

    Therefore, the statement is TRUE
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Shareholder of c corporation receiving property distribution must recognize dividend income equal to the fair market value of the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers