An Individual's Income for the Year Includes Both Dividend and Interest

question 54

Multiple Choice

An individual's income for the year includes both dividend and interest payments.Which of these statements correctly applies to that individual's tax liability?

• A) Dividends are taxed; tax on interest payments is paid at the corporate level.
• B) Interest is taxed; tax on dividend payments is paid at the corporate level.
• C) Both dividend and interest payments are taxed at the personal level.
• D) All taxes on dividend and interest payments are paid at the corporate level.

---

Definitions:

Writing

Refers to the act or process of marking coherent words onto a document or medium, often used in legal contexts to denote the physical manifestation of agreements, laws, or records.

Commercial Nature

Pertaining to or characterized by activities aimed at the exchange or buying and selling of goods and services.

Contracting Parties

The entities (individuals or companies) that enter into a contractual agreement, each undertaking specific obligations outlined within.

Courts Presume

The principle that courts assume certain facts to be true until proven otherwise, under specific legal doctrines or in the absence of evidence to the contrary.