Which of the following statements is CORRECT?O a. Allcorporationsother thannon-profits aresubject tocorporateincome taxes,which are15% for thelowestamounts ofincome and38% for thehighestamounts.O b. Congress recently changedthe tax laws to make dividendincome received byindividuals exempt fromincome taxes. Prior to theenactment of that law,corporate income was subjectto double taxation, where thefirm was first taxed on thecorporation's income andstockholders were taxedagain on this income when itwas paid to them asdividends.c. Small corporations O d. The income of certain O e. Allthat qualify underthe Tax Code canelect not to paycorporate taxes, butthen eachstockholder mustreport his or herpro rata shares ofthe firm's incomeas personal incomeand pay taxes onthat income.small corporationsthat qualify under theTax Code iscompletely exemptfrom corporateincome taxes. Thus,the federalgovernment receivesno tax revenue fromthese businesses,even though theyreport highaccounting profits.3businesses,regardlessof their legalform oforganizationare taxedunder theBusinessTaxProvisionsof theInternalRevenueCode.

Governments apply income taxes on the earnings of people, companies, and other organizations under…

Which of the following statements is CORRECT? O a. All corporations other than non-profits are subject to corporate income taxes, which are 15% for the lowest amounts of income and 38% for the highest amounts. O b. Congress recently changed the tax laws to make dividend income received by individuals exempt from income taxes. Prior to the enactment of that law, corporate income was subject to double taxation, where the firm was first taxed on the corporation's income and stockholders were taxed again on this income when it was paid to them as dividends. O c. Small corporations O d. The income of certain O e. All small corporations that qualify under the Tax Code is completely exempt from corporate income taxes. Thus, the federal government receives no tax revenue from these businesses, even though they report high accounting profits. that qualify under the Tax Code can elect not to pay corporate taxes, but then each stockholder must report his or her pro rata shares of the firm's income as personal income and pay taxes on that income. businesses, regardless of their legal form of organization , are taxed under the Business Tax Provisions of the Internal Revenue CU

Which of the following statements is CORRECT? O a. All corporations other than non-profits are subject to corporate income taxes, which are 15% for the lowest amounts of income and 38% for the highest amounts. O b. Congress recently changed the tax laws to make dividend income received by individuals exempt from income taxes. Prior to the enactment of that law, corporate income was subject to double taxation, where the firm was first taxed on the corporation's income and stockholders were taxed again on this income when it was paid to them as dividends. O c. Small corporations O d. The income of certain O e. All small corporations that qualify under the Tax Code is completely exempt from corporate income taxes. Thus, the federal government receives no tax revenue from these businesses, even though they report high accounting profits. that qualify under the Tax Code can elect not to pay corporate taxes, but then each stockholder must report his or her pro rata shares of the firm's income as personal income and pay taxes on that income. businesses, regardless of their legal form of organization , are taxed under the Business Tax Provisions of the Internal Revenue CU

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Ashton Corporation is headquartered in Pennsylvania and has a state income tax base there of $550.000. Of this amount, $89.000 was nonbusiness income. Ashton's Pennsylvania apportionment factor is 41.70 percent. The nonbusiness income allocated to Pennsylvania was $47,500. Assuming a Pennsylvania corporate tax rate of 8.25 percent, what is Ashton's Pennsylvania state tax liability? Note: Round your answer to the nearest whole dollar amount. State tax liability → $ 19,860
During the year, CDE Corporation earned enough profits to pay dividends to its shareholders. CDE is a C corporation. What are the tax consequences of this distribution? (a) The corporation will increase their earnings and profits by the amount distributed. (b) The corporation will reduce its taxable income by the amount distributed to the shareholders. (c) The corporation will pay a flat tax of 21% on the amount distributed. The shareholders also include their dividends received in taxable income. (d) There are no direct tax consequences for either the corporation or the shareholders.
Which of the following statements is incorrect? Some corporations can use the cash-basis of accounting. Corporations that own foreign subsidiaries cannot file a Form 1120. A corporation can choose a fiscal year-end of its choice when filing its first tax return. A calendar year corporate tax return is due 3½ months after the end of the fiscal year
N1.
Urgent Need (Explanation Require) Multiple Choice Questions. 1. Similar to the example given in class, assume that a corporation has $500 of cash revenue and $300 of cash expenses. Therefore the corporation has $200 of taxable income. The corporation pays taxes at the 40% income tax rate (i.e., all of the $200 of taxable income will be taxed at 40%). The corporation plans to pay any cash left over after the payment of income taxes to the stockholders. If the stockholders pay taxes at the 20% tax rate (i.e., any dividends they receive will be taxed at 20%), how much income tax (both corporate and individual) will be paid? A. $82 B. $104 C. $112 D. $116 E. $120 F. $140 2. A project requires an initial investment of $10 million and produces a single positive cash flow in one year. The opportunity cost of capital for the project is 8%. The expected return for the project is X%. Which of the following statements is true? A. The project will create value for the owner only if the expected…
Alpesh
Calculate the amount of corporate income tax due and the net income after taxes for the following corporations. Name Taxable Income Tax Liability Net Income after Taxes 20. All City Plumbing, Inc. $352,100 $73,941 $278,159 21. Universal Holdings, Inc. $88,955 $18,680.55 $70,274.45 22. Evergreen Corp. $14,550,000 blank 3 blank 4 23. Bioscience Labs, Inc. $955,000,000 $200,550,000 $754,450,000
Check my answer. Can a sole proprietor form as a single-member limited liability company (LLC)? If so, how would such an LLC be taxed? Under the check-the-box Regulations, an unincorporated entity with only one owner can file as an LLC and would be classified as a disregarded entity. LLC’s do not typically pay federal income taxes, but the LLC would need to report and pay employment and excise taxes.
Hw.11.
All resident corporations (except tax-exempt Crown corporations and registered charities) have to file a corporation income tax (T2) return every tax year even if there is no tax payable. True False
Which of the following are correct statements concerning corporate dividends? a. Dividends are legal liability of a corporation to its shareholders b. Dividends paid by a corporation to another corporation receive preferential tax treatment (minimum 70% exclusion from taxable income) c. Dividends are generally paid to the shareholders before the payment of interests to the bondholders d. Dividends payments are considered tax deductible expense while interest payments are not
This answer is wrong . please give me the right answer.

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