QQuestionAccounting
QuestionAccounting
According to the Lau & Johnson reading, corporations are subject to double taxation.
True
False
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Answer
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Step 1: Understand the problem
The problem asks us to determine whether the statement "corporations are subject to double taxation" is true or false, based on the Lau & Johnson reading.
Step 2: Recall the relevant information from the Lau & Johnson reading
In the Lau & Johnson reading, we find that corporations are subject to double taxation because the corporation's profits are taxed at the corporate level, and then the dividends paid to shareholders are also taxed at the individual level.
Final Answer
True - Corporations are subject to double taxation, as their profits are taxed at the corporate level and dividends paid to shareholders are also taxed at the individual level.
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