A Shareholder's Basis in Property Distributed as a Dividend Is

question 17

True/False

A shareholder's basis in property distributed as a dividend is its fair market value.

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Definitions:

Collateral Agreement

A secondary contract that supports the performance of obligations in a primary contract, often by providing for a security interest in assets.

Consideration

Something of value exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Power of Attorney

An official paper authorizing an individual (the agent) to handle legal or financial issues for another person (the principal).

Legal Document

A document that states some contractual relationship or grants some right, enforceable by law.