Which of the following would likely be a constructive dividend? a. An unreasonable salary paid to a

Question:

Which of the following would likely be a constructive dividend?
a. An unreasonable salary paid to a shareholder.
b. An unreasonable salary paid to the daughter of a shareholder.
c. A sale of a corporation’s asset to a shareholder at fair market value.
d. A payment by a corporation of a shareholder’s debts.
e. A payment by a corporation of a shareholder’s personal expenses.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...