Quail Corporation Is a C Corporation with Net Income of $300,000

question 20

True/False

Quail Corporation is a C corporation with net income of $300,000 during 2011. If Quail paid dividends of $50,000 to its shareholders, the corporation must pay tax on $300,000 of net income. Shareholders must report the $50,000 of dividends as income.

---

Definitions:

Specialist

An individual or business highly skilled and knowledgeable in a specific area or field, offering expertise-based services or products.

Farmer Salesperson

An individual who is both a farmer and takes an active role in marketing and selling the agricultural products directly to consumers or retailers.

Selling Activity

The actions involved in promoting and selling goods or services to customers.

Delivery Salespeople

Professionals responsible for selling and distributing products directly to customers in their homes or workplaces.