Which of the Following Is a Means to Avoid the Double

question 81

Multiple Choice

Which of the following is a means to avoid the double taxation burden imposed on the profits of corporations?

• A)Treat all corporations as passthrough entities for federal tax purposes.
• B)Enact tax legislation that would make dividends nontaxable to all of the corporation's shareholders.
• C)Allow corporate shareholders a credit on their tax returns for the taxes paid by the corporation on the profits currently distributed to shareholders as dividends.
• D)All of the above would avoid double taxation.