Which of the Following Statements Regarding Constructive Dividends Is Not

question 41

Multiple Choice

Which of the following statements regarding constructive dividends is not correct?

• A) Constructive dividends do not need to be formally declared or designated as a dividend.
• B) Constructive dividends need not be paid pro rata to the shareholders.
• C) Corporations that receive constructive dividends may not use the dividends received deduction.
• D) Constructive dividends are taxable as dividends only to the extent of earnings and profits.
• E) All of the above.

---

Definitions:

Implicit Memory

Memory that is not deliberately recollected but manifests in skills and conditioned behaviors.

Explicit Memory

The conscious, intentional recollection of factual information, previous experiences, and concepts.

Effortful Processing

The active memorization and learning of information through deliberate attention and effort.

Implicit Memory

A type of long-term memory that does not require conscious thought and enables us to perform tasks without deliberate effort.