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AAA Corporation Distributes an Automobile to Alexandria,a Shareholder,in Lieu of a Cash

question 83

True/False

AAA Corporation distributes an automobile to Alexandria,a shareholder,in lieu of a cash dividend.Alexandria must report the value of the automobile as dividend income.


Definitions:

Contract Law

The body of law that governs the formation, enforcement, and interpretation of agreements between parties.

Guarantee

A formal promise or assurance, typically in writing, that certain conditions will be fulfilled or a product will meet a specified standard of quality.

Indemnity

A legal agreement to compensate for any losses or damages incurred by another party.

Statute of Frauds

A legal principle that certain types of contracts must be in writing and signed by the party to be charged, in order to be enforceable.

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