The dividends paid by a corporation:
I.to an individual become taxable income of that individual.
II.reduce the taxable income of the corporation.
III.are declared by the chief financial officer of the corporation.
IV.to another corporation may or may not represent taxable income to the recipient.

Question

Quizplus · Accepted Answer

Option I is true as dividends received by individuals are taxable income. 
Option IV is also true because dividends paid to another corporation may or may not represent taxable income to the recipient depending on several factors, such as the tax status of the recipient corporation and the nature of the dividend. 
Options II and III are not correct, as the payment of dividends by a corporation doesn't reduce its taxable income and the declaration of dividends is the responsibility of the board of directors, not the chief financial officer.

The Dividends Paid by a Corporation