A Corporate Shareholder That Receives a Constructive Dividend Cannot Apply

question 66

True/False

A corporate shareholder that receives a constructive dividend cannot apply a dividends received deduction to the distribution.

---

Definitions:

Financial Statements

Formal records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Unusual Item

A significant transaction or event that is infrequent in nature, distinct from the ordinary activities of the business.

Current Operations

Relates to the primary activities that a business performs to earn revenue within its normal business cycle.

Accounting Methods

Systems that companies use to record their financial transactions, such as cash basis and accrual basis accounting.