Nick,Kristin,Spencer,Giselle,and Herbert are equal shareholders in Cuckoo Corporation.Which of the following,if any,could not be a constructive dividend?

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Nick could be charging more than a fair rental for the building (choice a. ).Kristen could be overcharging for the land (choice b. ).Unless it is assumed that the services are not worth anything,it is the corporation (not the shareholder)that received a benefit.In constructive dividend situations,the shareholder receives the benefit,not the corporation (choice c. ).The advance to Giselle might not be a bona fide loan.Even if the loan is legitimate,the interest element could result in a constructive dividend (choice d. ).

Nick,Kristin,Spencer,Giselle,and Herbert Are Equal Shareholders in Cuckoo Corporation