Which of the Following Statements Is CORRECT

question 32

Multiple Choice

Which of the following statements is CORRECT?

• A) All corporations other than non-profit corporations are subject to corporate income taxes, which are 15% for the lowest amounts of income and 35% for the highest amounts of income.
• B) The income of certain small corporations that qualify under the Tax Code is completely exempt from corporate income taxes.Thus, the federal government receives no tax revenue from these businesses.
• C) All businesses, regardless of their legal form of organization, are taxed under the Business Tax Provisions of the Internal Revenue Code.
• D) Small businesses that qualify under the Tax Code can elect not to pay corporate taxes, but then their owners must report their pro rata shares of the firm's income as personal income and pay taxes on that income.
• E) Congress recently changed the tax laws to make dividend income received by individuals exempt from income taxes.Prior to the enactment of that law, corporate income was subject to double taxation, where the firm was first taxed on the income and stockholders were taxed again on the income when it was paid to them as dividends.

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Definitions:

Whiskers

Long, projecting hairs or bristles growing near the mouth or other parts of the face of many animals, used for sensory purposes.

Fungus

A fungus is a type of living organism that belongs to its own kingdom, separate from plants and animals, characterized by its ability to decompose and absorb organic material.

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The green pigment found in the chloroplasts of plants that is vital for photosynthesis by absorbing light energy.

Biology Professor

An academic or university instructor specializing in the study of biology, responsible for teaching students and conducting research in the field.