If Individual Taxpayers Are the Shareholders of PST Corporation and PST

question 76

Multiple Choice

If individual taxpayers are the shareholders of PST Corporation and PST Corporation is a shareholder of MNO Corporation, how many levels of tax is MNO's pretax income potentially exposed to?

• A)One.
• B)Two.
• C)Three.
• D)None.

---

Definitions:

Exports and Imports

The act of selling goods and services to another country (exports) and buying goods and services from another country (imports).

Washing Machines

Household appliances designed to clean laundry by combining water, detergent, and mechanical action to remove dirt from clothes, linens, and other fabrics.

Manufactured

The process of producing goods on a large scale using labor, machines, tools, and chemical or biological processing or formulation.