Multiple Choice
If C corporations retain their after-tax earnings, when will their shareholders who are individuals be taxed on the retained earnings?
A) Shareholders will be taxed when they sell their shares at a gain.
B) Shareholders will be taxed in the year they elect to be taxed on undistributed retained earnings.
C) Shareholders will be taxed on undistributed retained earnings in the year the corporation files its tax return.
D) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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