Opal Corp. declared a 9% stock dividend on its common stock. The dividend
A. Requires a vote of Opal's shareholders.
B. Has no effect on Opal's earnings and profits for federal income tax purposes.
C. Is includible in the gross income of the recipient taxpayers in the year of receipt.
D. Must be registered with the SEC pursuant to the Securities Act of 1933.
Answer: B. Has no effect on Opal's earnings and profits for federal income tax purposes.
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The cost-to-cost basis measures progress towards completion by:
a. comparing costs incurred to date with total costs to complete the contract. b. tracking results of work completed to date; it is an output measure. c. tracking floors of a building completed versus floors still to be completed. d. tracking miles of a highway completed versus miles of highway still to be completed.
One partner is not liable for the other partner's actions in the conduct of their business
Indicate whether the statement is true or false