Asked by Jesse Mad3329 on May 04, 2024
Verified
Corporate profits distributed as dividends are
A) tax-free.
B) taxed once.
C) taxed twice.
D) taxed three times.
Corporate Profits
The total earnings of a company after subtracting production and operating costs, including taxes and interest.
Taxed Twice
Refers to a situation where the same income or financial transaction is subject to taxation in two different instances or under two different tax jurisdictions.
- Recognize the differences among diverse taxation forms, for instance, excise, payroll, income, and corporate taxes.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
C
Explanation :
Corporate profits distributed as dividends are taxed twice: first at the corporate level as income (corporate income tax) and then at the individual level as dividend income when distributed to shareholders.
Learning Objectives
- Recognize the differences among diverse taxation forms, for instance, excise, payroll, income, and corporate taxes.