Which of the following statements is most correct?
A)Corporations are allowed to exclude 70% of their interest income from corporate taxes.
B)Corporations are allowed to exclude 70% of their dividend income from corporate taxes.
C)Individuals pay taxes on only 30% of the income realized from municipal bonds.
D)Individuals are allowed to exclude 70% of their interest income from their taxes.
E)Individuals are allowed to exclude 70% of their dividend income from their taxes.

Question

Quizplus · Accepted Answer

Corporations can exclude 70% of dividend income received from other corporations from their taxable income, which is a tax benefit to mitigate double taxation on dividends.

Which of the Following Statements Is Most Correct