A) Pateht. A) The corporation pays tax on its income and the stockholders pay tax on their dividends B) The corporation pays tax on its income and the officers of the corporation pay tax on their 56) Double Taxation means: salaries. C) A corporation must pay double the amount of tax that an unincorporated business pays. D) A corporation pays taxes to the federal government and to the state government. 57) Assets contributed to a partnership by a partner would be recorded at: A) Cost less depreciation. C) Book value. B) Fair market value. D) Historical cost. 58) Net income in a partnership may not be distributed to the partners: A) As interest on beginning capital. C) As a salary allowance B) In a fixed ratio. D) In the form of dividends