Flashcards
Chapter 18 Key Terms
Flashcards do conjunto (8)
- 1Accumulated earnings and profitsUndistributed earnings and profits from years prior to the current year.
- 2Bright-line testTechnical rules found in the tax law that provide the taxpayer with objective tests to determine the tax consequences of a transaction.
- 3Constructive ownershipRules that cause stock not owned by a taxpayer to be treated as beneficially owned by the taxpayer for purposes of meeting certain stock ownership tests.
- 4Current earnings and profitsA year-to-year calculation maintained by a corporation to determine if a distribution is a dividend. Earnings and profits are computed for the current year by adjusting taxable income to make it more closely resemble economic income.
- 5DividendA distribution to shareholders of money or property from the corporation’s earnings and profits.
- 6Partial liquidationA distribution made by a corporation to shareholders that results from a contraction of the corporation’s activities.
- 7Stock redemptionA property distribution made to shareholders in return for some or all of their stock in the distributing corporation that is not in partial or complete liquidation of the corporation.
- 8Stock splitA stock redemption in which a corporation exchanges a ratio of shares of stock (e.g., 2 for 1) for each share held by the shareholder.
Informações
- Descrição
- Corporate Taxation: Nonliquidating Distributions
- Criado por
- Kalie Carney
- Visualizações
- 49
- Tags
- Avaliação