Question

Some company may pay dividend in the
form of asset that it is holing and which
is superfluous for it is called
dividend.​

Answer 1

Answer:

sorry this answer can't be found anyone may answer to this question

Answer 2

Answer:

When a dividend is paid in form of asset then it is called as Property dividend.​

Explanation:

Property dividend-

• Instead of making a cash or stock payment, a company may pay a non-monetary dividend to its shareholders.
• This distribution should be recorded at the fair market value of the assets distributed.
• Because the fair market value of the assets is likely to differ from the book value, the difference will be recorded as a gain or loss.
• This accounting rule can sometimes cause a company to purposefully issue property dividends in order to change its taxable and/or reported income.
• In general, assets that are no longer needed by the company are distributed as dividends to stockholders.
• A company may use its products to pay dividends on occasion. Securities of the Company's subsidiaries may also be paid out as property dividends.

Hence, when a dividend  is paid in form of assets of the company then is is known as Property Dividend.

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