Which One of the Following Statements Is Correct Concerning the Taxation

question 42

Multiple Choice

Which one of the following statements is correct concerning the taxation of dividends and capital gains?

• A)Seventy percent of capital gains derived from stock investments are tax exempt for corporate investors.
• B)Dividends are a form of tax-exempt income for individual investors.
• C)All investors are subject to the same tax rate on dividend income.
• D)Individual investors can defer taxation on both dividends and capital gains.
• E)As of 2003, individual investors pay a 15 percent tax on both dividends and capital gains.

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Definitions:

SAT

A standardized test commonly used for college admissions in the United States, assessing proficiency in critical reading, math, and writing.

WAIS

Wechsler Adult Intelligence Scale, a standard test used to measure an adult's intellectual and cognitive ability.

Stanford-Binet

An intelligence test designed to measure five factors of cognitive ability: fluid reasoning, knowledge, quantitative reasoning, visual-spatial processing, and working memory.

Intellectual Disability

A condition characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers many everyday social and practical skills.