8. The tax system Understanding taxes Which source of investor income is susceptible to double taxation? Dividends Interest earned You bought 1,000 shares of Tund Corp. stock for $60.59 per share and sold it for $82.35 per share after a few years. How will your gain or loss be treated when you file your taxes? As a capital gain taxed at the long-term tax rate As a capital gain taxed at the current ordinary-income tax rate taxable income. It Depreciation expenses directly affect a company's taxable income. An increase in depreciation expense will lead to a will tax deducted from a company's earnings, thus leading to a operating cash flow. According to a tax law established in 1969, taxpayers must pay the of the Alternative Minimum Tax (AMT) or regular tax. To offset taxable income in a given year, ordinary corporate operating losses can be: Carried forward indefinitely Carried back for 5 years and carried forward for 10 years taxable income. It Epreciation expenses directly affect a company's taxable income. An increase in depreciation expense will lead to a tax deducted from a company's earnings, thus leading to a operating cash flow. higher cording to a tax law established in 1969, taxpayers must pay the of the Alternative Minimum Tax (AMT lower ular tax. offset taxable income in a given year, ordinary corporate operating losses can be: Depreciation expenses directly affect a company's taxable inc will tax deducted from a company's earnings, Acc decrease tax law established in 1969, taxpayers must pi increase To Ohset taxable income in a given year, ordinary corporate op O Carried forward indefinitely