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.

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Definitions:

National Defense Education Act

A U.S. federal law passed in 1958 aimed at improving education in science, mathematics, and modern languages as a means to secure the nation’s defense.

Earth-Orbiting Satellite

is an artificial body placed in space for the purpose of collecting information or for communication, revolving around the Earth.

Literacy Rate

The percentage of people within a specified group who can read and write.

Social Security Act

A law enacted in 1935 in the United States to create a system of transfer payments in which younger, working individuals support older, retired people.