X Corporation owns 15% of the outstanding shares of Z Corporation.The Z stock is distributed to the shareholders of X Corporation as a dividend at its current market value.This is an example of a:

Question

Quizplus · Accepted Answer

A property dividend is a dividend paid to shareholders in the form of assets other than cash, such as shares of another company. In this case, X Corporation is distributing shares of Z Corporation as a dividend, which qualifies as a property dividend.

X Corporation Owns 15% of the Outstanding Shares of Z