**Understanding Double Taxation in Corporate Dividends (2018)**Corporations are taxed on their income, and shareholders are taxed on the dividends they receive. What provisions in the tax law reduce this "double tax" burden?1. **Option A**: - Dividends received by individuals are taxed at lower rates than other income. - No tax on dividends in the 10% tax bracket. - Dividends in the 12% through 35% brackets are taxed at 15%. - Dividends in the 37% tax bracket are taxed at 20%. - Eligible corporations can elect to be treated like partnerships ("S corporations"), with income reported by shareholders, not taxed to the corporation. - Corporations receiving dividends can claim a deduction between 50% and 100% of the dividends, depending on stock ownership.2. **Option B**: - No tax law provisions to reduce the "double tax" burden. - Shareholders are taxed as ordinary income, and corporations receive no tax deduction for payments.3. **Option C**: - Dividends received by individuals are taxed at lower rates than other income. - No tax on dividends in the 10% through 35% tax brackets. - Dividends in the 37% tax bracket taxed at 15%. - Eligible corporations can elect to be treated like partnerships ("S corporations"), with income reported by shareholders and not taxed to the corporation. - Corporations receiving dividends can claim a deduction between 25% and 100%, depending on stock ownership.4. **Option D**: - Dividends received by individuals are taxed at lower rates than other income. - No tax on dividends in the 10% and 12% tax brackets. - Dividends in the 22% through 35% brackets taxed at 15%. - Dividends in the 37% tax bracket taxed at 20%. - Eligible corporations can elect to be treated like partnerships, with similar provisions as "S corporations." - Corporations receiving dividends can claim a deduction between 50% and 100%, depending on stock ownership. This information helps clarify how tax laws aim to alleviate the impact of double taxation on corporate dividends, particularly through varied taxation strategies and possible deductions.

Corporation - An organization called a corporation is one whose shareholders choose a board of directors to manage its operations. The corporation, not the shareholders, is responsible for the operations and financial health of the company.Double taxation is the practice of taxing the same revenue twice, and it frequently occurs when corporations declare dividends. The net income is taxed by the corporation, and then shareholders are taxed on the announced dividend. However, a number of provisions are made to reduce double taxation. The following is the appropriate response in the case that has been presented: Dividends received by shareholders are taxed, while corporations are taxed on their income. The following are the tax law provisions that lessen this "double tax" burden: Due to the fact that corporations and their stockholders are regarded as different legal entities, there is double taxation. As a result, businesses pay taxes on their yearly profits, just like people do. Even if the earnings that supplied the funds to pay the dividends were previously taxed at the corporate level, when businesses distribute dividends to shareholders, the dividend payments result in income-tax liabilities for the shareholders who receive them. Double taxation of dividends paid to shareholders has generated a lot of discussions. While some say that taxing dividends received by shareholders constitutes unjust double taxation of income (because such income was already subject to tax at the corporate level), others maintain that this tax structure is reasonable. Hence, the correct answer will be Option (D)

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Accounting

Corporations are taxed on the income they earn, and shareholders are taxed on the dividends they receive. What provisions in the tax law reduce this "double tax burden? (Assume the year is 2018.) O A. Dividends received by individuals are taxed at lower rates than other income. There is no tax on dividends received by individuals in the 10% tax bracket. Dividends received by individuals in the 12% through 35% brackets are taxed at 15% while individuals in treated t the 37% tax bracket are taxed at 20%. In addition, eligible corporations can elect to be ed much like p ce partnerships. The income of these so-called "S corporations" is reported by shareholders, and is not taxed to the corporation. In addition, corporations receiving dividends from other corporations are eligible to claim a dividend-received deduction that varies between 50% and 100% of the dividends received depending on the percentage of stock owned. OB. There are no provisions in the tax law to reduce the "double tax burden. Shareholders are taxed as ordinary income and the corporation does not receive a tax deduction for the payments. OC. Dividends received by individuals are taxed at lower rates than other income. There is no tax on dividends received by individuals in the 10% through 35 % tax brackets. Dividends received by individuals in the 37% tax bracket are taxed at 15%. In addition eligible corporations can elect to be treated much like partnerships. The income of these so-called "S corporations" is reported by shareholders, and is not taxed to the corporation. In addition, corporations receiving dividends from other corporations are eligible to claim a dividend-received deduction that varies between 25% and 100% of the dividends received depending on the percentage of stock owned. O D. Dividends received by individuals are taxed at lower rates than other income. There is no tax on dividends received by individuals in the 10% and 12% tax brackets. Dividends received by individuals in the 22% through 35% brackets are taxed at 15% while individuals in the 37% tax bracket are taxed at 20%. In addition, eligible corporations can elect to be treated much like partnerships. The income of these so-called "S corporations" is reported by shareholders, and is not taxed to the corporation. In addition, corporations receiving dividends from other corporations are eligible to claim a dividend-received deduction that varies between 50% and 100% of the dividends received depending on the percentage of stock owned.