Question 1 (1 point) The rationale for allowing special tax treatment for qualified dividends is to ____________.

a alleviate the "double taxation" of income on corporations

b raise taxes on corporations

c raise taxes on individuals

d create a "double tax" effect on corporations

Question 2 (1 point) The value of a property dividend is ____________.

a the fair market value when distributed to the shareholder

b the fair market value when property is acquired by the corporation

c the historical cost when property is acquired by the corporation

d the historical cost when distributed to the shareholder

Question 3 (1 point) Earnings and profits are calculated in a manner similar to ____________.

a capital loss

b retained earnings

c net income

d capital gain

Question 4 (1 point) The dividend that is an extra share of ownership is called ____________.

a a qualified dividend

b a cash dividend

c a stock dividend

d a property dividend

Question 5 (1 point) Loans are treated as constructive dividends when ____________.

a there are no bona fide loan terms

b there is no specific payback date

c there is no written agreement

d all of the above

Question 6 (1 point) The dividend that is a noncash distribution is ____________.

a a qualified dividend

b a cash dividend

c a stock dividend

d a property dividend

Question 7 (1 point) Select the example of constructive dividends.

a shareholder use of corporate property

b bargain purchases/sales

c shareholder favorable loans

d all of the above

Question 8 (1 point) Qualified dividends come from corporations that are ____________.

a foreign or domestic and neither on a U.S. exchange

b foreign and not on a U.S. exchange but has a U.S. branch

c foreign but are traded on US exchanges

d foreign and not on a U.S. exchange

Question 9 (1 point) The rules that are used to determine if a stock redemption received sale or exchange treatment are called ____________.

a stock exchange rules

b stock rights

c stock attribution rules

d a capital sale

Question 10 (1 point) If a stock redemption does not quality as sale or exchange, it is taxed as a ____________.

a capital gain or loss

b capital loss

c capital gain

d dividend