An Individual's Only Source of Income Is Dividends from Public

question 142

Multiple Choice

An individual's only source of income is dividends from public companies.He is consid- ering transferring the public company shares to a corporation.If he was to do so, which of the following statements is correct?

• A)There would be a reduction in the total taxes paid.
• B)There would always be deferral of taxes as long as the dividend income was left in the corporation.
• C)All of the federal corporate taxes paid on the dividends would be refunded when all of the dividends received by the corporation are paid out to the individual.
• D)The individual taxes on the dividends would be lower after they have passed through the corporation.

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Definitions:

Commitment

The condition of being committed to a purpose, task, or partnership.

Contempt

A feeling of disdain or scorn towards someone or something, often viewed as morally inferior or despicable.

Stonewalling

Denotes a communication strategy where one party becomes unresponsive or shuts down dialogue, often in response to conflict.

Criticism

The act of expressing disapproval or pointing out the faults in something or someone.