Quail Corporation Is a C Corporation with Net Income of $125,000

question 23

True/False

Quail Corporation is a C corporation with net income of $125,000 during the current year. If Quail paid dividends of $25,000 to its shareholders, the corporation must pay tax on $100,000 of net income. Shareholders must report the $25,000 of dividends as income.

---

Definitions:

Root Cap

Protective cover of the root tip, whose cells are constantly replaced as they are ground off when the root pushes through rough soil particles.

Vessel Elements

Specialized tubular cells in plants that facilitate the transport of water and minerals.

Tracheids

Elongated cells in the xylem of vascular plants, serving in the transport of water and mineral salts.

Sieve-Tube Members

Plant cells that are part of the phloem and responsible for transporting sugars and other nutrients throughout the plant.