In a complete liquidation, a shareholder typically recognizes dividend income equal to his or her share...
In a complete liquidation, a shareholder typically recognizes dividend income equal to his or her share of E&P. (True or False)
Homework Answers
Answer)
My answer is False.
A equity shareholder never receive dividend during the time of liquidation. He will realises only his share of profit in liquidation only if he is able to get his full investment back. However a preference shareholder can recognise his outstanding dividend as they have if the company have adequate funds as they have preference over equity share.
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In a complete liquidation, a shareholder typically recognizes
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