Which of the following is least likely to result in a constructive dividend?
A)an unreasonable salary paid to a shareholder
B)a sale of a corporation's asset to a shareholder at fair market value
C)a payment by a corporation of a shareholder's debts
D)a payment by a corporation of a shareholder's personal expenses

Question

Quizplus · Accepted Answer

A sale of a corporation's asset to a shareholder at fair market value is a legitimate transaction and does not confer any undue benefit to the shareholder, thus it is least likely to be considered a constructive dividend.

Which of the Following Is Least Likely to Result in a Constructive