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.

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Definitions:

Centers for Disease Control and Prevention

A national public health institute in the United States that conducts research and activities aimed at preventing and controlling diseases, injuries, and disabilities.

Adults

Individuals in a mature stage of life, typically considered to begin after adolescence, marked by greater responsibility and autonomy.

Adaptive Thermogenesis

The process by which the body converts food energy (calories) to heat at a lower rate when a person eats less, because of, for example, famine or dieting.

Energy

The capacity to do work or produce change, which can exist in various forms such as kinetic, potential, thermal, chemical, and others.