A corporations business income is taxed in the following way? The income earned

Question

A corporations business income is taxed in the following way? The income earned by the corporation is taxed to the entity Only the board of directors pay tax on the income earned All corporation income is passed through to the individual shareholders. The individual shareholder pay taxes on their share of the income The income is not taxed at the entity level and only distributions are taxed to the share holder A corporations business income is taxed in the following way? The income earned by the corporation is taxed to the entity Only the board of directors pay tax on the income earned All corporation income is passed through to the individual shareholders. The individual shareholder pay taxes on their share of the income The income is not taxed at the entity level and only distributions are taxed to the share holder The income earned by the corporation is taxed to the entity Only the board of directors pay tax on the income earned All corporation income is passed through to the individual shareholders. The individual shareholder pay taxes on their share of the income The income is not taxed at the entity level and only distributions are taxed to the share holder

Explanation / Answer

Ans is A The income earned by the corporation is taxed to the entity

Explanation: A corporation is a separate legal entity and is liable for all its liabilities, so income earned by corporation is directly taxable to itself and any distribution made to its shareholders is also liable for dividend distribution tax.

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