Which of the Following Best Describes How a Corporation,which Has

question 52

Multiple Choice

Which of the following best describes how a corporation,which has not made any special tax elections,and its shareholders,are taxed?

• A) The corporation is not taxed,but the shareholders are taxed on their dividends.
• B) The corporation is taxed,but the shareholders are not taxed on their dividends.
• C) The corporation is taxed,and the shareholders are taxed on their dividends.
• D) Neither the corporation nor its shareholders are taxed.
• E) They are taxed as a partnership is taxed.