How are the tax consequences of the receipt of dividends computed?Option     Dividends are offset by any related expenses before inclusion in gross income     Dividends are excluded from gross income     Dividends are partially included in gross income based on shareholder's tax bracket     Dividends are fully included in gross income without any deductions

Local Dividends are included in taxpayers gross income.Question 10Select one:TrueFalse

Dividend income received from mutual in the hands of unit holders. A. Fully Taxable B. Fully Exempt C. Partly Taxable D. Partly Exempt

It refers to the amount of accumulated profits and gains realized out of the normal and continuous operations of the corporation after deducting therefrom distributions to stockholders and transfers to capital stock or other accounts, and which is not appropriated for definite corporate expansion projects or programs, not covered by a restriction for dividend declaration under a loan agreement, and not required to be retained under special circumstances obtaining in the corporation, such as when there is a need for a special reserve for probable contingencies.Group of answer choicesStock dividendsBonded indebtednessCash dividendsUnrestricted retained earnings

Group of answer choicesearnings per share minus dividends per share.net income determined using generally accepted accounting principles.dividendscash flows.

Which of the following statements is  NOT correct?A.One cannot tax both  the company and the shareholder for the same profit.B.Companies had paid 30% tax before distributing their dividends.C.The tax already paid by the company will offset the shareholder taxes that are due.D.The shareholder needs to include the dividend after tax into his or her taxable income.