Quail Corporation Is a C Corporation with Net Income of $125,000

question 23

True/False

Quail Corporation is a C corporation with net income of $125,000 during the current year. If Quail paid dividends of $25,000 to its shareholders, the corporation must pay tax on $100,000 of net income. Shareholders must report the $25,000 of dividends as income.

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Definitions:

Information

A document, prepared by the prosecutor and presented to the magistrate, which demonstrates that there is enough evidence to charge the defendant and bring him or her to trial.

Accounts

Records or statements of financial transactions, reflecting the financial activities of a person or organization.

Negotiable

A term describing an instrument, such as a check or bill of exchange, that can be transferred from one person to another in a manner that the holder in due course acquires a good title.

Handwriting

The act or skill of writing by hand; also refers to an individual's unique style of writing.