Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A)Unlike taxes on capital gains or interest income,which are paid annually,taxes on dividends are paid only at the time the investor sells the stock.
• B)Deferring the payment of capital gains taxes lowers the present value of the taxes,which can be interpreted as a lower effective capital gains tax rate.
• C)Investors with longer holding periods or with accrued losses face a lower tax rate on equity income,decreasing the effective tax advantage of debt.
• D)Investors with accrued losses that they can use to offset gains face a zero effective capital gains tax rate.

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Definitions:

Physical Traits

Observable characteristics of an organism, such as hair color, body shape, and other features determined by genes.

Human Body

The physical structure of a person, including all organs, tissues, and cells.

Chromosomes

Structures within cells that contain DNA and carry genetic information necessary for reproduction, growth, and maintenance of organisms.

Noncoding DNA

Segments of DNA that do not code for proteins but have roles in regulating gene expression and maintaining chromosome structure, among other functions.