Interest Paid by a Corporation Is a Tax Deduction for the Paying

question 55

True/False

Interest paid by a corporation is a tax deduction for the paying corporation, but dividends paid are not deductible.This treatment, other things held constant, tends to encourage the use of debt financing by corporations.

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Definitions:

System Justification

System Justification is a theory in social psychology that describes the tendency of people to justify and defend the status quo, even if it is at odds with their own interests or fairness.

Hindsight Bias

A bias towards believing one would have known the outcome in advance after an event is concluded.

Social Influence

The impact that individuals or groups have on a person's attitudes, beliefs, decisions, or actions through direct or indirect means.

Memorable Characteristics

Distinctive features or qualities of something or someone that make them easily remembered.