Which of the Following Statements Regarding U

question 9

Multiple Choice

Which of the following statements regarding U.S. corporate taxes is false?

• A) The federal tax rate for big corporations is officially 35 percent of profits.
• B) The federal corporate tax rate in the United States is one of the highest in Western democracies.
• C) Few corporations actually pay the 35 percent corporate tax rate.
• D) Most corporations pay a corporate tax rate of 25 percent or less, one of the lowest rates among Western democracies.
• E) Federal corporate taxes have increased since the 1950s.

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Definitions:

Credit Memorandum

Increase in depositor’s balance.

Original Price

The initial selling price of a good or service before any discounts, deductions, or adjustments are applied.

Debit Memorandum

Decrease in depositor’s balance.

Perpetual Inventory Method

A system of inventory management where adjustments to inventory records are made on a continuous basis as sales and purchases happen.