Multiple Choice
Eggington Enterprises,Inc.,made $22,000,000 in profits in 2016.Eggington paid $3,000 per share to its shareholders.Jeff Goldstein owns one share of Eggington.Which of the following is true?
A) Eggington pays taxes on the $22,000,000 and Jeff does not need to pay on his dividend distribution.
B) Eggington pays taxes only on the amounts not distributed to the shareholders.
C) Eggington does not owe taxes because it is incorporated.
D) Eggington pays taxes on the $22,000,000 and Jeff pays taxes on his $3,000 in dividends.
Correct Answer:
Verified
Correct Answer:
Verified
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