Congress allows corporations to exclude from taxes 70 to 100 percent of dividends received from other corporations. Congress did this to
A. encourage corporations to invest in each other.
B. avoid double taxation on dividends.
C. avoid triple taxation on dividends.
D. lower the cost of equity financing for corporations.
Answer:C
Congress allows corporations to exclude from taxes 70 to 100 percent of dividends received from other corporations. Congress did this to
A. encourage corporations to invest in each other. B. avoid double taxation on dividends. C. avoid triple taxation on dividends. D. lower the cost of equity financing for corporations.