Which of the Following Statements Regarding Common Stock Dividends Is

question 14

Multiple Choice

Which of the following statements regarding common stock dividends is true?

• A)They provide a tax deduction for the corporation paying them, and they are not included in the taxable income of the recipients.
• B)They are paid out of the after-tax income of the corporation paying them, and the recipients also pay taxes on this income.
• C)They are paid out of the after-tax income of the corporation paying them, so the recipients do not have to pay taxes on the income.
• D)They provide a tax deduction for the corporation paying them, but the recipients of the income must pay taxes on the income.

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Definitions:

Mole

A unit in chemistry used to express amounts of a chemical substance, defined as containing exactly 6.02214076×10²³ particles, such as atoms or molecules.

S Atoms

Sulfur atoms, which are nonmetallic elements with the atomic number 16 known for their yellow crystals and role in biological systems.

Mass

A measure of the amount of matter in an object, typically in kilograms or grams, independent of its volume or any forces acting on it.

Mole

A basic unit of measure in chemistry that represents a quantity of chemical substance containing approximately 6.022 x 10^23 particles, atoms, molecules, ions or electrons.