Which Statement Is Correct About the Tax Treatment of Dividend

question 87

Multiple Choice

Which statement is correct about the tax treatment of dividend income and capital gains for pension funds?

• A) Dividends are taxable while capital gains are not taxable.
• B) Capital gains are taxable while dividends are not taxable.
• C) Both dividends and capital gains are taxable.
• D)Neither dividends nor capital gains are taxable.

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Definitions:

Gametes

Gametes are the reproductive cells in sexually reproducing organisms, with males producing sperm and females producing eggs, each carrying half the genetic information of the parent.

Chromosome

A thread-like structure of nucleic acids and protein found in the nucleus of most living cells, carrying genetic information in the form of genes.

Locus

(pl., loci) The place on the chromosome at which the gene for a given trait occurs (i.e., a segment of the chromosomal DNA containing information that controls some feature of the organism); also called gene locus.

Homozygous

Having a pair of identical alleles for a particular locus. Compare with heterozygous.