Which statement best describes the concept of the "double taxation" of corporation income?

Question

Quizplus · Accepted Answer

The concept of double taxation of corporation income refers to the idea that corporate income is taxed at both the corporate level and the shareholder level, specifically when distributed as dividends. This double taxation can be mitigated by electing to be taxed as an S corporation or through other means. Option A is incorrect because not all states tax corporate income, and even those that do may not tax it at the same rate as the federal government. Option B describes a specific scenario relating to appreciated property, which is not always the case. Option D is incorrect because the alternative minimum tax is a separate issue from double taxation.

Which Statement Best Describes the Concept of the "Double Taxation