Which of the Following Is True Concerning Dividends

question 7

Multiple Choice

Which of the following is true concerning dividends?

• A)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.
• B)Dividends received from a CCPC's business income that is not subject to the small business deduction are typically grossed-up to include 117% of the dividend.
• C)Eligible dividends require a 117% gross-up.
• D)The scheme 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.

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