AAA Corporation Distributes an Automobile to Alexandria,a Shareholder,in Lieu of a Cash

question 83

True/False

AAA Corporation distributes an automobile to Alexandria,a shareholder,in lieu of a cash dividend.Alexandria must report the value of the automobile as dividend income.

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Definitions:

Notes Receivable

Written promises for amounts to be received, typically noting interest, by a debtor in favor of the creditor.

Cash (Net) Realizable Value

The net amount a company expects to receive in cash.

Maturity Value

The amount payable to an investor at the end of a debt instrument's holding period or maturity.

Maturity Date

The specified date when the final payment of a loan, bond, or other financial instrument is due to be paid.