Which of the Following Statements Regarding the Dividends And/or the Dividends

question 104

Multiple Choice

Which of the following statements regarding the dividends and/or the dividends received deduction (DRD) is true?

• A) Dividends are taxed at preferential rates for corporations as well as for individuals.
• B) The DRD can increase the net operating loss of a corporation.
• C) Corporations are allowed to deduct from a dividend received the product of the dividend and the percentage of the receiving corporation's ownership in the distributing corporation's stock.
• D) The DRD allows corporations to deduct the amount of dividends that they distribute.

---

Definitions:

Registered Dietitian

A healthcare professional specializing in nutrition and dietetics, certified to provide dietary and nutritional counseling.

Medical Technologist

A healthcare professional who performs laboratory testing and analysis in various areas of clinical laboratory science.

Occupational Therapist

A healthcare professional specializing in helping patients develop, recover, or maintain daily living and work skills.

Nursing Assistant

A healthcare worker who provides basic care to patients under the supervision of nursing staff.