Under GAAP, the declaration of a property dividend may require the recognition of a gain or loss if the fair value of the property is different from its book value on the declaration date.

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According to GAAP, when a property dividend is declared, the fair value of the property is used to determine the amount of the dividend. If the fair value is different from the book value, a gain or loss must be recognized at the time of the dividend declaration.

Under GAAP, the Declaration of a Property Dividend May Require