Which of the following statements is CORRECT?
A. Retained earnings, as reported on the balance sheet, represent 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.
Answer: C
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What will be an ideal response?
A partner's authority to act for the partnership is similar to the authority of a(n): A) agent to act for a principal
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Which of the following analyses involves making hypothetical changes to the data associated with a problem and observing how these changes influence the results?
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