A Shareholder's Basis in Property Received as a Dividend Is

question 85

True/False

A shareholder's basis in property received as a dividend is its fair market value on the date of the distribution.

---

Definitions:

Pretax Income

The amount of income earned by a business before any taxes have been deducted.

Fixed Costs

Fixed costs are business expenses that do not change with the level of goods or services produced by the business, such as rent, salaries, and insurance.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as materials and labor directly involved in manufacturing a product.

Units

A measure of quantity used to express the amount of a product, service, or resource, often used in production and inventory contexts.