When stock is sold after the record date for a dividend that has been declared, the seller must recognize as income the dividend received.

Question

Quizplus · Accepted Answer

When a stock is sold after the record date for a dividend that has been declared, the seller is entitled to receive the dividend, even though the stock is sold before the dividend is paid. Therefore, the seller must recognize the dividend as income.

When Stock Is Sold After the Record Date for a Dividend