All of the following statements about mutual insurance companies are correct except:
A. If a mutual company goes public, it demutualizes
B. Mutual companies issue policies referred to as participating
C. Policy dividends issued by mutual companies are guaranteed and not taxable
D. Dividends allow policyholders to share in a mutual company's
Ans: C. Policy dividends issued by mutual companies are guaranteed and not taxable
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Popcorn Corporation owns 90% of the outstanding voting common stock of Salty Corporation. On January 1, 2009, Salty issued $1,000,000 face amount of 12%, $1,000 bonds payable at 119.20
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