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Explain How a Constructive Dividend Result Could Occur in Each

Question 168

Essay

Explain how a constructive dividend result could occur in each of the following situations.
a.A shareholder is employed by a corporation.
b.A shareholder lends funds to the corporation.
c.A corporation sells property to the shareholder.
d.A corporation rents property from the shareholder.
e.A shareholder drives a car owned by the corporation.

Correct Answer:

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.If the salary paid to the shareholder-...

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