Which of the Following Is Least Likely to Result in a Constructive

question 82

Multiple Choice

Which of the following is least likely to result in a constructive dividend?

• A)an unreasonable salary paid to a shareholder
• B)a sale of a corporation's asset to a shareholder at fair market value
• C)a payment by a corporation of a shareholder's debts
• D)a payment by a corporation of a shareholder's personal expenses

---

Definitions:

Budget Surplus

A situation where a government's revenue exceeds its expenditures during a specific period of time.

Tax Liability

The total amount of tax owed to a taxing authority, such as the government, based on taxable income and tax rate.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.

Social Security

A government program that provides financial assistance to people with inadequate or no income, primarily the elderly, disabled, and families with dependent children.