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Consider the Following Methods of Taxing a Corporation's Income

question 81

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Consider the following methods of taxing a corporation's income:
A.A flat tax, as opposed to a progressive tax, is levied on corporate profits.
B.A system whereby a corporation calculates its annual profit and notifies each shareholder of her portion of the profits.The shareholder would then be required to include this amount as taxable income for her personal income tax.The corporation does not pay a tax.
C.A system where the federal government continues to tax corporate income through the corporate income tax but allows individual taxpayers to receive, tax free, corporate dividends and capital gains.
Which of the methods above would avoid double taxation?


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Transaction

A business deal or action, such as buying or selling, that involves the exchange of goods, services, or funds.

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A fundamental concept that emerges from judicial decisions over time, forming part of the legal system in many countries.

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A professional licensed to negotiate and arrange real estate transactions, including buying, selling, renting properties.

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Obligations or tasks that an individual is required or expected to perform.

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