What Is the Process of Double Taxation for the Stockholders

question 30

Multiple Choice

What is the process of double taxation for the stockholders in a C corporation?

• A) Their shares are taxed when they are both bought and sold.
• B) The corporation is taxed on the profits it makes, and the owners are taxed when this profit is distributed to them.
• C) The owners of a corporation are taxed when they receive dividend payments and when they make a profit from the sale of shares.
• D) The corporation must pay taxes on any profits it makes, and the capital raised by the sale of shares is also subject to taxation.

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