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Business, 12.11.2019 06:31 gabelawson6996

On november 1, 2017, bob, a cash basis taxpayer, gave dave common stock. on october 30, 2017, the corporation had declared the dividend payable to shareholders of record as of november 22, 2017. the dividend was paid on december 15, 2017. the corporation has paid the $1,200 dividend once each year for the past ten years, during which bob owned the stock. when dave collected the dividend on december 15, 2017: a. bob must include $1,000 (10/12 x $1,200) of the dividend in his gross income. b. bob must include all of the dividend in his gross income. c. dave must include all of the dividend in his gross income. d. dave should treat the $1,200 as a recovery of capital. e. none of these is correct.

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