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.

---

Definitions:

Statute Violation

An act that breaks a specific statute law, which can be either a criminal or civil law, established by a legislative body.

Exculpatory Clause

A contract provision that releases one party from liability for harm or damages that might arise under the agreement.

Legalese

Specialized language used in the legal profession, characterized by complex sentences and technical terminology.

Conspicuous Print

Text in a document that is designed to be noticeably visible or attention-grabbing to ensure that it is read.