On 1 November 2014, Oster Company Declared a Dividend of $3.00

question 17

Multiple Choice

On 1 November 2014, Oster Company declared a dividend of $3.00 per share. Oster Company has 20 000 ordinary shares outstanding and no preference shares. The date of record is 15 November, and the payment date is 30 November 2014. Which of the following statements is TRUE about the date of record?

• A)The liability must be recorded on the date of record.
• B)The company transfers cash to a stockbroking firm on the date of record.
• C)No journal entry is made on the date of record.
• D)Cash is disbursed to shareholders on the date of record.

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Definitions:

Adoption Credit

A tax credit offered to adoptive parents to cover some of the costs associated with the legal adoption of a child.

Special Rules

Regulations or provisions that apply in specific situations, often modifying or exempting certain transactions or entities from the general rules of tax law.

AGI

The total income earned by an individual in a year minus specific deductions allowed by the tax code, recalculated for emphasis as foundational in the determination of taxable income.

Qualifying Children

Dependents who meet specific IRS criteria regarding relationship, age, residency, and support, impacting eligibility for certain tax benefits.