Accounting for liquidating dividend singles dating paris french parisian romance
Please join us on Facebook we appreciate your feedback. We appreciate your comments and suggestions, and look forward to serving your needs in the future.It is our goal so serve up the very best in account and finance education.A corporation issues these dividends if it plans to terminate its business or if it plans to merge with another corporation under a new name.
The basis in the stock is how much the taxpayer paid to obtain the stock.
A stock paying a liquidating dividend is indicated in stock transaction tables in newspapers by the symbol C, next to the dividend column.
See also final dividend, General Utilities Doctrine.
Although percent of voting stock owned serves as a guideline, the amount of influence and control is used to determine the accounting for equity securities.
The cost method of accounting for stock investments records the acquisition costs in an asset account, “Equity Investments.” As with debt investments, acquisition costs include commissions and fees paid to acquire the stock.