Nick,Kristin,Spencer,Giselle,and Herbert Are Equal Shareholders in Cuckoo Corporation

question 96

Multiple Choice

Nick,Kristin,Spencer,Giselle,and Herbert are equal shareholders in Cuckoo Corporation.Which of the following,if any,could not be a constructive dividend?

• A)Nick rents a building to Cuckoo.
• B)Kristen sells land to Cuckoo.
• C)Cuckoo pays Spencer no salary for services he performs.
• D)Cuckoo makes an advance to Giselle.
• E)Herbert makes an interest-free loan to Cuckoo.

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Definitions:

Atomic Mass

The mass of an atom expressed in atomic mass units (amu), essentially equivalent to the number of protons and neutrons in the nucleus.

Atom

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, with electrons orbiting the nucleus.

Amu

Atomic Mass Unit, a standard unit of mass that quantifies mass on an atomic or molecular scale.

Valence Electrons

Electrons in the outermost shell of an atom that are available for bonding with other atoms.