Which, If Any, of the Following Statements Best Describes the History

question 145

Multiple Choice

Which, if any, of the following statements best describes the history of the Federal income tax?

• A) It did not exist during the Civil War.
• B) The Federal income tax on corporations was held by the U.S. Supreme Court to be allowable under the U.S. Constitution.
• C) The Federal income tax on individuals was held by the U.S. Supreme Court to be allowable under the U.S. Constitution.
• D) Both the Federal income tax on individuals and on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution.
• E) None of the above.

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities.

General Ledger

A comprehensive record of a company's financial transactions over the life of the organization.

Paid Dividend

Refers to the portion of a company's earnings that has been distributed to shareholders as dividends.