Which of the Following Statements Is CORRECT

question 71

Multiple Choice

Which of the following statements is CORRECT?

• A)The income of certain small corporations that qualify under the Tax Code is completely exempt from corporate income taxes.Thus, the federal government receives no tax revenue from these businesses.
• B)All businesses, regardless of their legal form of organization, are taxed under the Business Tax Provisions of the Internal Revenue Code.
• C)Small businesses that qualify under the Tax Code can elect not to pay corporate taxes, but then their owners must report their pro rata shares of the firm's income as personal income and pay taxes on that income.
• D)Congress recently changed the tax laws to make dividend income received by individuals exempt from income taxes.Prior to the enactment of that law, corporate income was subject to double taxation, where the firm was first taxed on the income and stockholders were taxed again on the income when it was paid to them as dividends.
• E)All corporations other than non-profit corporations are subject to corporate income taxes, which are 15% for the lowest amounts of income and 35% for the highest amounts of income.

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Definitions:

Effort Justification

The tendency to assign greater value to outcomes that require a higher level of effort to achieve, often as a means to rationalize the expenditure of resources.

Effort Justification

A phenomenon where individuals assign greater value to outcomes they had to put effort into achieving or obtaining.

Marriage Ceremonies

Rituals or events that celebrate and formalize the union between two individuals within a cultural or legal context.

Marriage-Inconsistent Behaviors

Actions or patterns of behavior in a marriage that contradict the expectations, norms, or agreements between the partners, potentially leading to conflict or dissatisfaction.