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Dass when by the double bo o ns Choose an example of station using a corporation...

Question

Dass when by the double bo o ns Choose an example of station using a corporation...

Dass when by the double bo o ns Choose an example of station using a corporation and harder What is meant by the double tatio
Dass when by the double bo o ns Choose an example of station using a corporation and harder What is meant by the double tation of corporbons? O A Doublewati refers to the ting of the same income wice This type of two typically rests from an corporation paying tax on its taxable income and the shareholders also paying income tax on any dividers received them the corporation OB Double to refers to the tag of the same incomece This type of taxation to cal resutstrom a Corporation paying tax on its table income and shareholders paying income tax on any dividend received from the Ccorporation OC. Dout o on of a compr o metengd Corporations are any datos corporations m ay taxon come OD Da t orprobeng dard deductions Choose a n o n sing a corporation and shareholder OA During 2018 con Corporation generated gross income of 51 500 000 and had ordinary and necessary deductions of 000 000, resulting in table income of 100,000 Based on the corporation tax rate of 21, Crimson would be set totes of 120000 (DOO ) Assume the corporation padded towarders during 2010 of 400.000 Further assume that he cable income of the shareholders is such that they pay at rate of Non quated dividends. The shareholders collectively would have to pay individual income of 500,000 $400,000x15) the tax rate on qualified dividends is 15% The total tax one corporation's taxatie ncome of 100.000 herefore, would be $100.000 (5120.000 paid by Crimson Corporation plus 100 000 paid by the shareholders) OB Dung 2015 C o perti generates income 100 000 and had ordinary and recessary deductions of 000 000 rung in bale o 00000 Based on the corporation tax rate of 21% Crimson would be subject to as of 12800000000021) Assume the corporation pada salary to shareholders during 2019 of 400.000 Since the corporation Warchers with a salary of dividends the 400 000 is part of Corporations on and the on Crimson Corporations ba ncome is $125.000 OC. Dung 2018 Corporation des com 1 500 000 and had o d e r deduction of 100 000 ginable income 000 Based on Corporation of 215 C on would be 12 000 000 000 con Corporation and during 2018 400 000 The total tax on Cmon Corpor a te comes 125 000 because is pone ndid andard dution OD. During 2018 Cuma Corporation generated gross come of 51 500 000 and had ordinary deductions of $500.000, resulting in t he income of $ 500.000 Based on the corporation are of 211 Crimson would be Subject totes 3315.000 (1 500 000X215) Crimson Corporation paid dividends to shareholders during 2019 of $400.000 The total axon Crimson Corporation's taxable income is $315 000 because is responsible fora of the sand is not allowed any deductions from income Chek to select your

Answers

Double taxation is used for C corporations where the tax is is to be paid by the companies before distributing it to shareholders, then when the profits are paid to shareholders through dividends then also it is subjected to tax. Hence the answer option is B

for second part, Answer is option A as in this case the tax is paid by the company on taxable income after standard deductions, also when the dividends is paid shareholders has to pay the tax as per the rate of 15%


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