Question

Corporate profits are found by A. summing corporate income taxes, dividends, and undistributed corporate profits. B. adding corporate income taxes and dividends and subtracting undistributed corporate profits. C. subtracting corporate income taxes from the sum of dividends and undistributed corporate profits. D. summing dividends, undistributed corporate profits, and proprietors' income.

Answer 1

Answer: Option C

               

Explanation: In simple words, corporate profit is a synonym for net income.It is that part of the revenue that is left with a corporate entity after deducting for all expenses that are incurred to earn such revenue. Taxes, interest and dividends are some of the examples of such expenses.

Thus, from the above we can conclude that the correct option is C.