An individual stockholder reinvests dividends under a company's dividend reinvestment plan (DRIP). The reinvestment dividends...

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Accounting

An individual stockholder reinvests dividends under a company's dividend reinvestment plan (DRIP). The reinvestment dividends are:

A

Not ever taxable to the shareholder but do change the taxable basis of shares.

B

Taxable to the shareholder in the year of the reinvestment as capital gains.

C

Taxable to the shareholder in the year declared and reinvested.

D

Taxable income that is deferred until the sale of the stock.

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