A corporation can elect to pay dividends to its shareholders. Which of the following dividends is NOT a type of dividend that a corporation can pay to itsshareholders?

A.

Capital dividend

B.

Non-eligible dividend

C.

Eligible dividend

D.

Deferred dividend

Matt and Tiffany are married. Which of the following people are considered related to Matt for taxpurposes?

Choose the correct answer.

A.

Jose, who is the son ofMatt's ex-wife, Kara

B.

Tiffany's ex-husband Ben

C.

Haley, who is the wife ofTiffany's brother, Felix

D.

Matt's cousin Boris

When considering a loan made from a corporation to ashareholder, ________.

Choose the correct answer.

A.

shareholders can beemployees, but are potentially subject to different rules

B.

shareholders are NOT considered employees of a corporation

C.

shareholders can be considered employees of the corporation and treated thesame, so long as they work in the capacity of an employee

D.

shareholders can be considered employees if they own less than10% of the outstanding shares