Which of the following statements concerning taxation is accurate?
A) Corporations pay federal income taxes but not state income taxes.
B) Corporations pay federal, and often state, income taxes.
C) Only the owners must pay taxes on corporate income.
D) Corporations pay income taxes but their owners do not.

Question

Quizplus · Accepted Answer

Corporations are subject to federal income taxes on their earnings, and most states also impose a corporate income tax. Owners of corporations may also be subject to additional taxes on any income they receive from the corporation, such as dividends or capital gains.

Which of the Following Statements Concerning Taxation Is Accurate