Which of the following statements is true?
A) Payment of the return on equity is deductible by the corporation and is a form of property income for the individual.
B) Payment of the return on equity is not deductible by the corporation and is a form of business income for the individual.
C) Payment of the return on equity is deductible by the corporation and is a form of business income for the individual.
D) Payment of the return on equity is not deductible by the corporation and is a form of property income for the individual.

Question

Quizplus · Accepted Answer

The return on equity, such as dividends, is not deductible by the corporation for tax purposes and is considered property income for the individual receiving it.

Which of the Following Statements Is True