ABC Corporation Declared a Dividend for Taxpayers of Record as of December

question 4

True/False

ABC Corporation declared a dividend for taxpayers of record as of December 24, 2017. The dividend checks were mailed on December 31, 2017. Ed, a cash basis shareholder, received the dividend check on January 2, 2018. Ed cannot delay reporting the income from the dividend until 2018.

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Definitions:

Sales Tax

A tax on sales or receipts from sales, usually calculated as a percentage of the sale price and collected by the seller from the consumer at the point of sale.

Merchandise Sold

The total value of goods that have been sold by a company during a specific period, often reported on the income statement.

Sales Tax Department

The government department or agency responsible for collecting, administering, and enforcing sales tax regulations and payments.

Sales Tax Percentage

The rate at which sales tax is applied to the purchase price of goods and services, expressed as a percentage.