If a Corporation Has a High Debt-To-Equity Ratio, the IRS

question 89

True/False

If a corporation has a high debt-to-equity ratio, the IRS may reclassify deductible interest payments as nondeductible dividends.

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Definitions:

Caffeine Use

The consumption of caffeine, a stimulant found in coffee, tea, chocolate, energy drinks, and certain medications, which can affect mental alertness and physical performance.

Physical Effects

The bodily changes or consequences that result from an action, condition, or disease.

Intoxication

The condition of having physical or mental control impaired by the excessive consumption of alcohol, drugs, or other psychoactive substances.

Overdose

A scenario in which an individual consumes an excessive and dangerous amount of a substance, typically drugs or medication, leading to potentially fatal outcomes.