Liquidating dividend accounting Adult web cams louisville ky

When a company has more liabilities than assets, equity is negative and no liquidating distribution is made at all.

Sharon has only received regular dividends before and is not familiar with a liquidating dividend. Regular dividends are distributions of the company's profit that the company pays to its shareholders or owners.Regular dividends are paid out of a company's retained earnings or the earnings it has accumulated every year since it has been in operation.Liquidating dividends are distributions to shareholders that comes from its capital base or the amount that shareholders invested in the company.Often a liquidation is overseen by a receiver, or a chosen representative of the shareholders, who oversees the process to ensure that it runs smoothly and that the corporation maximizes the return from the sale of its assets.When you receive a liquidating dividend, the amount will be reported to you on a 1099-DIV form, in either box 8 or 9.