Private Inc

question 7

Multiple Choice

Private Inc.received a $5,000 eligible dividend from Public Inc., which is a non-connected corporation.Which of the following applies?

• A)The dividends can be reinvested by Private Inc.on a tax-free basis.
• B)The dividend will be subject to Part I tax.
• C)The dividend will be subject to Part IV tax at rate of 38 1/3%.
• D)Receipt of the dividend will result in an immediate dividend refund for Private Inc.

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Definitions:

Black Pigment

A substance that gives a dark color to materials, often used in cosmetics, art, and the natural coloration of organisms.

Vertebrate Eyes

The specialized organ in vertebrates that allows for the perception of vision, consisting of structures such as the cornea, iris, lens, and retina.

Retina

The light-sensitive layer of tissue at the back of the eye that captures images and sends visual information to the brain.

Light Sensitive

Refers to an organism or material that reacts to or is affected by the presence or intensity of light.