Question
In: Accounting
________ will ALL increase a company's capital dividend account. Choose the correct answer. A. Life insurance...
________ will ALL increase a company's capital dividend account.
Choose the correct answer.
A. Life insurance proceeds, net capital gains, and the additional refundable tax on investment income (ART)
B. Stock dividends received from other corporations, non-taxable life insurance proceeds & non-taxable portion of capital gains
C. Capital dividends received from other corporations, non-taxable life insurance proceeds & non-deductible portion of capital losses
D. Capital dividends received from other corporations, non-taxable life insurance proceeds & non-taxable portion of capital gains
Solutions
Expert Solution
Capital dividend account is prepared to pay tax free dividends to the shareholders. Only certain specified items will be part of Capital dividend account
Correct Statement:
Capital dividends received from other corporations, non-taxable life insurance proceeds & non-taxable portion of capital gains will ALL increase a company's capital dividend account.
Option D is correct
Explanation why other options are not correct:
| Option No. | Option details | Explanation |
| A | Life insurance proceeds, net capital gains, and the additional refundable tax on investment income (ART) | Only non-taxable portion of capital gains will form part of Capital dividend. Also additional refundable tax on investment income (ART) will not form part of Capital dividend |
| B | Stock dividends received from other corporations, non-taxable life insurance proceeds & non-taxable portion of capital gains | Only capital dividends received from other corporations will form part of capital dividend, not all dividends |
| C | Capital dividends received from other corporations, non-taxable life insurance proceeds & non-deductible portion of capital losses | Non deductible portion of capital losses will be reduced from capital dividend. It will not increase a a company's capital dividend account |
ekkarill92 answered 2 years agoRelated Solutions
Choose all correct statements. 1. Dividend growth rate is equivalent to the dividend yield. 2. The...
Choose all correct statements.
1. Dividend growth rate is equivalent to the dividend yield.
2. The total return on a stock is equal to the dividend yield
plus the capital gains yield.
3.The benchmark PE ratio can be used to value the stock of firms
that pay no dividends.
4.Assume the constant dividend growth model. An increase in the
capital gains yield will increase the current value of a stock.
Choices
II, III and IV only
II only
II and...
All of the following statements concerning whole life insurance are correct EXCEPT If the whole life...
All of the following statements concerning whole life insurance
are correct EXCEPT
If the whole life insurance premiums are to be paid throughout
the insured’s lifetime, the insurance is known as limited-payment;
if the whole life insurance premiums are to be paid only during a
specified period, the insurance is designed as ordinary life
Whole life insurance offers permanent protection with cash
values, and it can be either
participating or nonparticipating
The protection afforded by the whole life insurance contract...
Answer all the following questions: - I- Choose the best correct answer: 1- The ……………...
Answer all the following questions: -
I- Choose the best correct answer:
1- The …………… defect is a ……………… defect which refers to the
presence of a pair of vacant sites.
A) Schottky, stoichiometric B) Schottky, non-stoichiometric
C) Frenkel, non-stoichiometric D) Frenkel,
stoichiometric
2- ……………….. is a powerful method for the determination of
phase diagrams, especially in conjunction with other techniques,
such as ……………………. for phase identification.
A) in order; DTA/DSC, XRD B) in order; DTA/DSC, TGA
C)...
Choose the correct answer. A.1. The paradox of sparing: A. occurs when the increase in savings...
Choose the correct answer.
A.1. The paradox of sparing:
A. occurs when the increase in savings leads to a reduction in
total expenditure.
B. occurs when the increase in consumption leads to a reduction
in total expenditure.
C. is a result of fiscal policy.
D. is a result of monetary policy.
A.2. The productive gap of the economy:
A. occurs when monetary policy is effective.
B. occurs when fiscal policy is effective.
C. is the deviation of real GDP from...
Choose the correct answer please A) All of the following are part of a truly effective...
Choose the correct answer please
A) All of the following are part of a truly effective board
except for:
1.
Fiduciary responsibilities
2.
Major component of the leadership team
3.
Strategic partner with a health commissioner
4.
A volunteer mentality toward roles and responsibilities
B) What is adaptive leadership?
1.
The process of adapting to new leaders.
2.
Changing leadership styles as one goes along.
3.
The practice of mobilizing people to tackle tough challenges and
thrive
4.
Targeting the...
1. All of the following statements are correct EXCEPTa.After a life insurance policy has...
1. All of the following statements are correct EXCEPT
a.
After a life insurance policy has been in force for 2 years, the insurer can no longer contest the policy based on a false answer in the application about the insured’s health.
b.
If the insured dies 2 weeks after the policy premium was due but not paid, the life insurance company must pay the beneficiary only an amount equal to the total premiums paid.
c.
If the insured commits...
All of the following statements concerning the methods of providing life insurance protection are correct EXCEPT...
All of the following statements concerning the methods of
providing life insurance protection are correct EXCEPT a. An
insurance company can use two approaches to provide life insurance
protection; term insurance, which is temporary, or cash value
insurance, which is permanent protection that builds up a reserve
or savings component. b. Term insurance is a form of life insurance
in which the death proceeds are payable in the event of the
insured's death during a specified period and nothing is...
5.) All of the following statements concerning variable life insurance are correct EXCEPT (a)If the variable...
5.) All of the following statements concerning variable life
insurance are correct EXCEPT
(a)If the variable universal life policy investment experience
is weak, the death benefit amount may be reduced to zero.
(b)Variable life has a fixed premium and fluctuating death
benefit and cash values.
(c)Variable life policies must be regulated by the Securities
and Exchange Commission (SEC).
(d)The owner of a variable universal life policy has the option
to invest in a variety of investments.
7.) All of the...
The following statements are about variable life insurance. Select the answer choice containing the correct statement....
The following statements are about variable life insurance.
Select the answer choice containing the correct statement.
The insurance company alone assumes the investment risk for
variable life insurance policies.
Variable life insurance policies offer policyowners guaranteed
investment earnings and minimum cash values.
Assets representing policy reserves of variable life insurance
policies are placed in investment accounts that are kept separate
from the insurance company’s general investment account.
The death benefit provided by a variable life insurance policy
remains constant throughout...
please choose correct answer?? All of the following is a description of team nursing except one:...
please choose correct answer??
All of the following is a description of team nursing except
one:
a.
A group of care giver with leader provide better patient
care.
b.
Team leader has the least skills in the team.
c.
Every patient has the right to receive the best care possible
with the available staff and time .
d.
Team leader supports group productivity and development .
****
Salma is a head nurse who is responsible , accurate and
efficient manager....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
ADVERTISEMENT