Which Statement Regarding the Tax System Is True

Which statement regarding the tax system is true?

A) Since companies can deduct dividends paid but not interest paid, such a tax system favours the use of equity financing over debt financing.
B) Interest paid to an individual is counted as income for tax purposes and taxed at the individual's regular tax rate.
C) The maximum federal personal tax rate in 2012 is 35%.
D) Ordinary corporate operating losses can be carried back to each of the preceding 10 years and forward for the next 3 years and used to offset taxable income in those years.