Corporation a Receives a Dividend from Corporation B

question 18

Multiple Choice

Corporation A receives a dividend from Corporation B. Corporation A includes the dividend in its gross income for tax and financial accounting purposes (no book-tax difference) . If A has accounted for the dividend correctly (following the general rule) , how much of B stock does A own?

• A)A owns less than 20 percent of the stock of B.
• B)A owns at least 20 but not more than 50 percent of the stock of B.
• C)A owns more than 50 percent of the stock of B.
• D)Cannot be determined.

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Definitions:

Nominal Group Technique

A structured method for group brainstorming that encourages individual participation and idea generation.

Delphi Technique

A method used to reach a consensus among a panel of experts through a series of questionnaires interspersed with feedback summaries.

Chair Multiparty Negotiation

A process where a central figure or chairperson facilitates negotiations involving multiple parties to achieve a mutual agreement.

Responsibility

The obligation to carry out duties correctly and the accountability for the outcomes of those actions.