If an S Corporation Distributes Appreciated Property as a Dividend

question 40

True/False

If an S corporation distributes appreciated property as a dividend, it must recognize gain as to the appreciation.

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Definitions:

Bloomer

A type of women's clothing that emerged in the mid-19th century, featuring ankle-length trousers gathered at the hem, part of a dress reform movement.

Functional Clothing

Garments designed with a specific purpose or function in mind, such as protective wear, sports gear, or weather-appropriate clothing.