Upon the date of declaration of a dividend, the corporation has incurred a liability for the dividend.

Name: Upon the date of declaration of a dividend, the corporation has incurred a liability for the dividend.
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When a dividend is declared, it creates a legal obligation on the part of the corporation to pay the declared amount to its shareholders. This obligation is recognized as a liability on the balance sheet of the corporation until the dividend is paid.

Upon the Date of Declaration of a Dividend, the Corporation