Which of the following statements is most correct? A)Retained earnings, as repor

Question

Which of the following statements is most correct?

A)Retained earnings, as reported on the balance sheet, represents the amount of cash a company has available to pay out as dividends to shareholders.

B)Interest received by corporations are subject to partial taxation. Only thirty percent of them is subjected to taxes.

C)Dividend received by corporation is completely tax deductible.

D)Interest paid by corporation is completely tax deductible.

E)Because taxes on long-term capital gains are not paid until the gain is realized, investors must pay the top individual tax rate on that gain.

Explanation / Answer

The correct answer is option c i.e. dividend received by corporation is tax deductible. According to the U.S. federal tax laws, the Dividend Received Deduction states that the dividend received by a company can be deducted from the total income.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.