Which of the following statements concerning taxation is accurate?
A) Corporations pay federal income taxes but not state income taxes.
B) Corporations pay federal and state income taxes.
C) Only the owners must pay taxes on corporate income.
D) Corporations pay income taxes but their owners do not.

Question

Quizplus · Accepted Answer

Corporations are required to pay both federal and state income taxes on their profits. The owners or shareholders of the corporation may also be required to pay taxes on any dividend income they receive from the corporation, but this is separate from the corporate income tax.

Which of the Following Statements Concerning Taxation Is Accurate