Question
Which of the following corporate disbursements could IRS successfully reclassify as a constructive dividend? Group of answer choices A. Wages paid to a shareholder in
Which of the following corporate disbursements could IRS successfully reclassify as a constructive dividend? Group of answer choices A. Wages paid to a shareholder in excess of what an independent third party would reasonably be paid to do the same job. B. Interest on convertible bonds owned by a shareholder. C. Excessive rent for corporate use of shareholder property D. Interest payments on non-convertible shareholder debt evidenced by a note that charges a market rate of interest, with no subordination clauses, a specific term, remedies for default, and is not issued in amounts proportional to shareholders' stock holdings. E. All of the above are possible constructive dividends. F. Only A & C. G. Only A, B, & C.
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