If the Shareholders of a Calendar Year C Corporation Elect

question 33

True/False

If the shareholders of a calendar year C corporation elect S status on Friday, March 11, 2017, the election is effective for all of 2017.

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Definitions:

Dividend

A share of a company's profits paid out to its shareholders, typically in the form of cash or additional stock.

Cumulative Preferred Stock

A type of preferred stock where missed dividend payments accumulate and must be paid out before any dividends can be issued to common stockholders.

Dividend

A portion of a company's earnings that is distributed to shareholders as a reward for their investment.

Par Value

Par Value is the face value of a bond or share of stock as stated by the issuing company, and it's often a nominal amount used for accounting purposes.