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.

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Definitions:

Genes

The basic units of heredity in living organisms, made up of DNA, that carry instructions for the development, functioning, growth, and reproduction of all known living organisms.

Homozygous

A genetic condition where an individual has two identical alleles for a particular gene or trait.

Heterozygous

Having two different alleles of a particular gene, one inherited from each parent.

Sex Chromosomes

Chromosomes involved in determining the sex of an organism, with human males typically having one X and one Y chromosome, and females having two X chromosomes.