Which, If Any, of the Following Statements Best Describes the History

question 65

Multiple Choice

Which, if any, of the following statements best describes the history of the Federal income tax?

• A)It existed during the Civil War.
• B)The Federal income tax on corporations was held by the U.S.Supreme Court to be contrary to the U.S.Constitution.
• C)The Federal income tax on individuals was held by the U.S.Supreme Court to be allowable under the U.S.Constitution.
• D)Both the Federal income tax on individuals and on corporations was held by the U.S.Supreme Court to be contrary to the U.S.Constitution.
• E)None of the above.

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Definitions:

Paid-In Capital

Paid-in capital is the amount of money a company has received from shareholders in exchange for shares of stock.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by its issuer.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically with dividends that must be paid out before dividends to common stockholders.

Par Value

A nominal or face value assigned to a share of stock by the company's charter, which may not reflect the actual market value.