Asked by Kiran Rawal on May 07, 2024
Verified
Which of the following are taxed?
A) Both corporate profits and dividends shareholders receive
B) Corporate profits but not dividends shareholders receive
C) Dividends shareholders receive but not corporate profits
D) Neither corporate profits nor dividends shareholders receive
Dividends Shareholders
Profits distributed to shareholders of a corporation, typically in the form of cash payments or additional shares of stock.
- Discern the variances between different tax types, namely excise, payroll, income, and corporate taxes.
Verified Answer
GT
Gianna ThibeaultMay 11, 2024
Final Answer :
A
Explanation :
Both corporate profits and dividends shareholders receive are taxed. Corporate profits are taxed at the corporate level, and then dividends distributed to shareholders are taxed again at the individual level, a concept known as double taxation.
Learning Objectives
- Discern the variances between different tax types, namely excise, payroll, income, and corporate taxes.