Earnings of C conventional)corporations can be:
A)Taxed twice if they are distributed as dividends to stockholders.
B)Taxed at twice the going rate of a partnership or sole proprietorship.
C)Taxed by the federal government,but they are exempt from state taxes if the corporation owns any facilities within that state.
D)Taxed the same as a partnership.

Question

Quizplus · Accepted Answer

Earnings of conventional corporations can be taxed twice if they are distributed as dividends to stockholders. The corporation first pays income tax on its earnings, and then the shareholders pay income tax on the dividends received from the corporation. This is known as double taxation.

Earnings of C Conventional)corporations Can Be