Jesse Corp. owns 4,000,000 shares of James Corp. On December 31, 2020, Jesse distributed these shares as a dividend to its shareholders. This is an example of a
A) property dividend.
B) stock dividend.
C) liquidating dividend.
D) cash dividend.

Question

Quizplus · Accepted Answer

A property dividend involves distributing non-cash assets to shareholders, and in this case, shares of another corporation (James Corp.) owned by Jesse Corp. are being distributed, which qualifies as a property dividend.