Identify Which of the Following Statements Is True

question 26

Multiple Choice

Identify which of the following statements is true.

• A)Consent dividends are cash dividends paid following an authorizing vote of the shareholders.
• B)Dividends that are paid in the two preceding tax years can be used as a dividend carryover to reduce the amount of the current year's personal holding company (PHC)tax liability.
• C)Dividends paid by a personal holding company in the first 2 1/2 months of a tax year are automatically throwback dividends.
• D)All of the above are false.