Question

assessment
question 1/3
a stock dividend is taxable income because...
it divides your stock in half, giving you twice as much money.
it’s the interest that you earn based on the amount of stock you hold.
it’s a payment directly to you based on the company’s success.
it’s a calculation of your taxes by dividing your stocks by your tax bracket.

Explanation:

A stock - dividend is a distribution of additional shares to existing shareholders. It is considered taxable income as it represents a payment based on the company's success. It is not simply dividing stock in half to double money (it doesn't work that way in terms of value), not interest on stock, and not a tax - calculation method.

Answer:

it's a payment directly to you based on the company's success.