McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 62

On October 3, 2006, the Board of Directors of Saks, Inc.declared a "special cash dividend" of $4 per share payable on November 30, 2006 to shareholders of record as of November 15, 2006.Determine the tax status of this distribution to the shareholders using the company's website (http://www.aksincorporated.om/).