Which of the Following Is True Concerning Dividends

question 3

Multiple Choice

Which of the following is true concerning dividends?

• A)The system to eliminate double taxation assumes that the corporate tax rate is 27.5% when eligible dividends are grossed-up to include 138% of the dividend.
• B)Dividends received from a CCPC's business income that is not subject to the small business deduction are typically grossed-up to include 115% of the dividend.
• C)Dividends received from a CCPC's business income that is subject to the small business deduction are typically grossed-up to include 138% of the dividend.
• D)Eligible dividends require a 115% gross-up.

---

Definitions:

Spruce

A genus of coniferous trees found in northern temperate and boreal regions, valued for their wood and ornamental uses.

Adaptations

Changes or processes through which organisms or species evolve to become better suited to their environment.

Store Water

The process of collecting and retaining water for future use, crucial in areas with limited or seasonal rainfall.

Distillation Process

A method of separating mixtures based on differences in their volatilities in a boiling liquid mixture.