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Q: When does a corporation pay a dividend?
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Is payment of a dividend a requirement of a stock corporation?

No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in order that those mutual funds might buy their stock.


What is a cash payment from a corporation's profit?

dividend.


What is a capital dividend?

A capital dividend is a special dividend paid to shareholders of a corporation out of capital gains income produced from the sale of property.


Does the 70 percent dividend exclusion include preferred stock?

70 percent dividend income exclusion on the tax returns of corporations. That is, if a corporation owns preferred stock, it can exclude 70 percent of dividend income and pay income taxes on only 30 percent of dividend income, both preferred and common stock.


Who is guaranteed a dividend in a corporation?

preferred stock holder...


Who can declare a dividend for a corporation?

The board of directors only.


When does a corporation record a dividend related liability?

on a declaration date


What are the 3 dates and their entries that are associated with dividends.?

In the United States, the three dates that are significant for both paying and accounting for any given cash dividend are: 1) Declaration date: Dividends are not payable unless and until the corporation's Board of Directors declares that a dividend will be paid. The date on which they promise to pay a dividend is called the declaration date, and that is the date on which the company incurs an obligation to pay the dividend. Generally on that date the Board will specify the two other important dates: the ex-dividend date, and the payment date. On the day a dividend is declared, the accounting entries are Debit the Retained Earnings account and credit the Dividends Payable liability account for the total amount of the dividend. 2) Ex-dividend date (or "date of record"): The ex-dividend date is the cutoff date used to identify the particular persons to whom an upcoming dividend will be paid. The shareholders listed on the corporation's records as the owners of shares at the ex-dividend date are the ones who will receive payment of the upcoming dividend, whether or not they still own the shares on the date the dividend is paid. There is no accounting entry related to the ex-dividend date. 3) Payment date: This is the date on which the cash dividend is actually paid out to the shareholders. When the dividend is paid, the accounting entries are: Debit the Dividends Payable account and credit the Cash account for the total amount of the dividend. This eliminates the liablility that was recorded when the dividend was first declared, and reflects the funds going out of the corporation's cash when the dividend is paid.And so, why are we reading this?


When a corporation receives a dividend from another corporation how is it taxed?

Dividends are income to the receiving corporation. If it is a sub-chapter S corporation, it is income to the shareholders, as is any other income of the corporation.


What is the effect of a stock dividend on a corporation's stockholders'equity accounts?

The stock Dividend is more or less profit sharing. When a dividend paying company is profitable they pass along those profits to the shareholders in the form of a dividend check.


What does the size of the dividend per share of stock depend on?

the corporation's profits


Why do companies no pay dividend?

Why do companies not pay dividends