. Varying amounts
Which of the following best describes how corporations are taxed on dividend income?
a. Like individuals, corporations are taxed on all dividends received.
b. Seventy percent of dividend income received by corporations is tax exempt.
c. Varying amounts of dividend income received by corporations are tax-exempt, depending on the percent of the paying corporation that the receiving corporation owns.
d. In order to avoid triple taxation of earnings, dividend income received by one corporation from another in which it owns stock is 100% tax-exempt.
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