Question: a . A constructive dividend can occur when a shareholder uses corporation property for personal purposes at no cost . TrueFalse b . Bargain sales

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A constructive dividend can occur when a shareholder uses corporation property for personal purposes at no cost

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TrueFalse

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Bargain sales to shareholders produce dividend income equal to the difference between the property's basis and the amount the shareholder paid for the property.

TrueFalse

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If a corporation pays an obligation of a shareholder, the payment is treated as a constructive dividend.

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