Which of the Following Statements Is CORRECT

question 74

Multiple Choice

Which of the following statements is CORRECT?

• A) the maximum federal tax rate on personal income in 2014 was 50%.
• B) since companies can deduct dividends paid but not interest paid, our tax system favors the use of equity financing over debt financing, and this causes companies' debt ratios to be lower than they would be if interest and dividends were both deductible.
• C) interest paid to an individual is counted as income for tax purposes and taxed at the individual's regular tax rate, which in 2014 could go up to 35%, but dividends received were taxed at a maximum rate of 15%.
• D) the maximum federal tax rate on corporate income in 2014 was 50%.
• E) corporations obtain capital for use in their operations by borrowing and by raising equity capital, either by selling new common stock or by retaining earnings. the cost of debt capital is the interest paid on the debt, and the cost of the equity is the dividends paid on the stock. both of these costs are deductible from income when calculating income for tax purposes.

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Definitions:

Associative Play

A stage of play where children play together, sharing materials and interacting, but not with a common goal.

Simple Play

Simple play refers to basic, unstructured play activities that do not require complex rules or strategies, often seen in young children.

Problem-Solving Experience

Exposure to and engagement with situations that require the identification and application of strategies to overcome obstacles and reach a desired outcome.

Winning

Achieving victory in a competition or contest.