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

question 37

True/False

ABC Corporation declared a dividend for taxpayers of record as of December 24, 2016. The dividend checks were mailed on December 31, 2016. Ed, a cash basis shareholder, received the dividend check on January 2, 2017. Ed cannot delay reporting the income from the dividend until 2017.

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Definitions:

Inventory Valuation

The method or process of calculating the cost/value of inventory that a business holds at any given time, which affects cost of goods sold and profitability.

Merchandising Company

A business entity that purchases finished goods and resells them to consumers to earn a profit without altering the physical form of the goods.

Perpetual Inventory System

A continuous inventory system is a technique for managing stock that immediately logs the transaction of inventory sales or purchases using computerized point-of-sale systems and enterprise asset management programs.

Purchasing Merchandise Inventory

The process of acquiring goods for resale, including the selection, ordering, and receipt of merchandise.