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EastWind [94]
3 years ago
11

Which of the following statements is true of a corporation?

Business
2 answers:
Butoxors [25]3 years ago
8 0

Answer:D

Explanation:

Vladimir [108]3 years ago
3 0

Answer:

d. Corporations pay income tax on corporate earnings, and shareholders pay personal income tax on corporate dividends and gains from the sale of stock.

Explanation:

At the end of each accounting period, the corporation is expected to pay a tax known as income tax from the taxable income earned by the corporation. This tax is paid by the corporation before the amount to be paid to the shareholders of the company in form of dividends.

The shareholders of the company are further subjected as individuals to personal income tax.

This is known as double taxation of dividend. Gains from sale of stock are also taxed under personal income tax.

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