Which of the Following Statements Is Most Correct

question 3

Multiple Choice

Which of the following statements is most correct?

• A)Retained earnings, as reported on the balance sheet, represents the amount of cash a company has available to pay out as dividends to shareholders.
• B)70% of the interest received by corporations is excluded from taxable income.
• C)70% of the dividends received by corporations is excluded from taxable income.
• D)Because taxes on long-term capital gains are not paid until the gain is realized, investors must pay the top individual tax rate on that gain.
• E)The corporate tax system favors equity financing, as dividends paid are deductible from corporate taxes.

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Definitions:

St. Louis World's Fair

An international exposition held in St. Louis, Missouri, in 1904, officially known as the Louisiana Purchase Exposition and celebrated the centennial of the Louisiana Purchase.

New York Times

An influential American newspaper known for its comprehensive coverage of national and international news.

Filipino Exhibit

Displays or presentations, historically at world's fairs or expositions, that showcase the culture, people, and history of the Philippines, sometimes critiqued for perpetuating colonial perspectives.

St. Louis World's Fair

An international exposition held in 1904 in St. Louis, Missouri, also known as the Louisiana Purchase Exposition, celebrating the centennial of the Louisiana Purchase.