Identify Which of the Following Statements Is True

question 60

Multiple Choice

Identify which of the following statements is true.

• A)A deficiency dividend is included in the shareholder's gross income for his/her tax year that includes the last day of the tax year in which the personal holding company claims a dividends-paid deduction.
• B)A shareholder who receives a deficiency dividend must report the dividend as gross income for the tax year that includes the last day of the distributing corporation's tax year on which it was a PHC.
• C)A personal holding company's payment of a deficiency dividend eliminates its need to pay the personal holding company tax as well as any interest and underpayment penalties on the tax deficiency.
• D)All of the above are false.

---

Definitions:

Expert Power

is the influence one possesses due to their skills, knowledge, or expertise in a particular area, which others recognize and value.

Distinct Source

A unique origin from which information, data, or materials are obtained.

Centrality

Centrality refers to the importance or influence of a role or position within a network or structure.

Knowledge-based Economy

An economy driven by the use of knowledge and information as the key asset for growth and development.