Indicate Whether Each of the Items Listed Below Would Be

question 120

Multiple Choice

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2019 tax year.
-Scholarships for tuition and books

• A)Included
• B)Excluded

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Definitions:

Diluted Earnings Per Share

A metric that calculates a company's earnings per share (EPS) if all convertible securities were converted into common stock, often resulting in a lower EPS.

Liquidating Dividend

A type of dividend paid by a company to its shareholders from its capital base, effectively returning a portion of the original investment back to the shareholders.

Capital Dividend

A dividend paid to shareholders from a company's capital rather than its earnings, often tax-exempt for the receiver.

Dividend Policy

The strategy a company uses to decide how much it will pay out to shareholders in dividends.