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can you also please explain why as well 6. Stone Corporation is a C corporation. Diego owns all of the stock. During the current year
can you also please explain why as well 6. Stone Corporation is a C corporation. Diego owns all of the stock. During the current year Stone earned taxable income of $750,000 and paid a $500,000 dividend to Diego. Which of the following statements is correct? A) Stone will pay corporate income tax on its earnings, and Diego will pay individual income tax on the dividends. B) Only Stone will pay taxes. Diego will not pay any taxes due to his holdings in Stone. C) Stone's income will flow through to Diego's tax return, and he will pay the taxes on the $500,000 of corporate income. D) Stone will not pay any taxes, but Diego will pay taxes on the dividend received
can you also please explain why as well
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