When it comes to the tax treatment of capital gains corporat

When it comes to the tax treatment of capital gains, corporations are different from individual taxpayers in that they...

Multiple Choice

pay taxes at lower rates.

do not pay taxes on capital gains.

do not have preferential tax rates for capital gains.

always pay a flat tax of 20%.

Solution

C.do not have preferential tax rates for capital gains.

Individuals have a preferential tax rate for capital gains.

They do not have preferential tax rates for capital gains.

Corporations do not have preferential tax rates for capital gains, capital gains are added to normal income of corporations for tax purposes.