If a Corporation Receives $50,000 in Preferred Stock Dividends,how Much

question 18

Multiple Choice

If a corporation receives $50,000 in preferred stock dividends,how much tax does it pay on these dividends? The corporate tax rate is 35%.

• A) $0
• B) $5,250
• C) $12,250
• D) $17,500

---

Definitions:

Withdrawal

The act of taking money from an account, or the removal of assets or resources, often applicable in banking and partnerships.

Telephone Bill

A telephone bill is a periodic charge levied on individuals or businesses for the use of telecommunication services.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to net profit or loss.