Quail Corporation Is a C Corporation That Generates Net Income

question 28

True/False

Quail Corporation is a C corporation that generates 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.

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Definitions:

Dizygotic Twins

Dizygotic twins, also known as fraternal twins, are produced from the fertilization of two separate eggs during the same pregnancy, sharing about 50% of their DNA.

Fraternal Twins

Siblings born at the same time from separate eggs fertilized by different sperm cells, sharing 50% of their DNA.

One-Child Policy

A government-imposed limit of one child per family, famously utilized by China from 1979 to 2015 to control population growth.

Birth Rate

A statistical measure representing the number of live births per 1,000 people in a population per year.