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If a Corporation Makes $100,000 in Profit, How Will That

Question 59

Multiple Choice

If a corporation makes $100,000 in profit, how will that profit be taxed if the money is all distributed to the owners?


A) $100,000 will be taxed at the individual tax rate of each owner.
B) $100,000 will be taxed at the corporate rate only.
C) $100,000 will be taxed at the corporate rate; then those after-tax profits will be taxed again as dividends when distributed to each owner.
D) $100,000 will be taxed at the corporate rate; then those after-tax profits will be taxed again at the corporate rate when distributed to each owner.

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