Determine Ronas gross income from the following items she receives during the current year: Interest on savings
Question:
Interest on savings account ....... $ 300
Dividends on Microsoft stock ........ 200
Interest on Guam development bonds .... 2,000
Dividend on life insurance policy ....... 200
(The company is a mutual life insurance company, and the dividend
is a return of part of the premium she paid on the policy.)
In addition, Rona owns 1,000 shares of Cochran Corporation common stock. Cochran has a dividend reinvestment plan through which stockholders can receive a stock dividend equal to 4% of their holdings in lieu of a cash dividend of equal value. Rona takes the 40 shares of stock, which are worth $3 per share.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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