Under Imputation Systems

Under imputation systems:

A) dividends are tax-free and capital gains are taxed
B) capital gains are taxed as ordinary income,and dividends are generally taxed at a lower rate than ordinary income.
C) dividends are taxed as ordinary income,and capital gains are generally taxed at a lower rate than ordinary income.
D) ordinary taxes payable on dividends are partly offset by the tax credit from taxes paid by the corporation.