LIQUIDATING DIVIDENDS Definition

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LIQUIDATING DIVIDENDS are dividends paid by a corporation that is in the process of liquidation/bankruptcy. Liquidating Dividends are paid from the capital of the corporation as opposed to earnings. Recipients of Liquidating Dividends are typically shareholders, bond holders and/or creditors. In the U.S. such dividends are generally nontaxable under the Internal Revenue Code.

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WRITE-UP SERVICE is the provisioning of all reporting requirements of bookkeeping and accounting services. The following is a non-exhaustive list of reporting services provided:

  • 1099s report preparation for subcontractors
  • Bank account reconciliation
  • Check coding
  • Fixed asset schedules
  • Maintenance of general ledger
  • Payroll deposit calculations
  • Payroll tax filings
  • Personal property tax returns
  • Preparation of internal financial statements

PARETO PRINCIPLE/LAW see 80 - 20 RULE.

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