Which Statement Best Describes the Concept of the "Double Taxation

question 46

Multiple Choice

Which statement best describes the concept of the "double taxation" of corporation income?

• A) Corporate income is subject to two levels of taxation: the regular tax and excess profits tax.
• B) Corporate income is taxed twice at the corporate level: first when earned and then a second time if appreciated property is distributed to a shareholder.
• C) Corporate income is taxed when earned by a C corporation and then a second time at the shareholder level when distributed as a dividend.
• D) Corporate income is subject to two levels of taxation: at the federal level and a second time at the state level.

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Definitions:

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