On feb. 1, 2018, the board of directors of x corp. declares a dividend of $2 per share to shareholders of record as of march 1, 2018, payable as of april 1, 2018. taxpayer-a transfers 200 shares to taxpayer-b by gift on jan. 1, 2018 and sells another 200 shares to taxpayer-b on feb. 15, 2018. according to the united states district court, as discussed in class, how much, if any, dividend income must taxpayer-b realize in 2018 (both taxpayer-a and taxpayer-b are cash basis)? a.$400b. $0c. $800d. none of the choices are correcte. $200

c. $800

Explanation:

Taxpayer B was the owner of first 200 shares on Jan 1, 2018. So, the dividend declared by the company will become taxable ( 200* $2 = $400).

Company declared another dividend on Feb 1, 2018. the declaration stated that the dividend of $2 per share would be payable to shareholders who are in record on March 1, 2018. Taxpayer A transferred 200 shares to Taxpayer B on Feb 15, 2018 so Taxpayer B was in record of Company on March 1, 2018. Hence, B has to pay tax on dividend of another 200 shares ( 200* $2 = $400)

so, $400 + $400= $800

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.