The amount of the dividend on a nonliquidating corporate distribution of property is the fair value of the property.

Question

Quizplus · Accepted Answer

The amount of the dividend on a nonliquidating corporate distribution of property is generally equal to the fair value of the property distributed to the shareholders. This is because the fair value of the property represents the value of the property that the shareholders are receiving as a form of payment for their ownership in the company. However, there may be certain exceptions or limitations to this rule, depending on the specific circumstances of the distribution.

The Amount of the Dividend on a Nonliquidating Corporate Distribution