Dragon Corporation Reports a Distribution on Its Return from the Third

question 37

Multiple Choice

Dragon Corporation reports a distribution on its return from the third previous year as a stock redemption producing a capital gain. When the return is audited during the current year, the distribution of the third previous year is characterized by the IRS as a dividend. This change causes Dragon Corporation to be classified as a personal holding company for the third previous year. Which of the following statements is correct?

• A)Dragon Corporation will owe interest and/or underpayment penalty even if the PHC tax is avoided by a deficiency dividend.
• B)Dragon Corporation will owe no interest and/or underpayment penalty if the PHC tax is avoided by a deficiency dividend.
• C)A deficiency dividend is not permitted to be paid by Dragon.
• D)A dividend must be paid within 120 days of establishing the PHC tax liability and a claim for a dividends-paid deduction must be filed within 90 days of the determination date.

Grasp the societal attitudes towards science and technology.

Recognize the theme of technology outpacing its creators.

Assess the economic impact of natural disasters.

Understand the concept and implications of “normal accidents” within modern technologies.

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Definitions:

Acute Illness

A disease or condition that comes on suddenly and is typically short in duration, often requiring immediate care or treatment.

ICD-9 Code

A system used in healthcare to classify and code diagnoses, symptoms, and procedures, replaced by the ICD-10.

Annual Physical Exam

A yearly health check-up with a healthcare provider intended to prevent health problems and maintain wellness.

Established Patient

A patient who has been seen by a healthcare provider in the same practice within a specific period, typically within the past three years.