Hello, I'm having trouble figuring this out, Can you help me?

Which of the following statements istrueregarding the tax treatment of payments to securities holders?

Interest and preferred stock dividends are not tax-deductible, while common stock dividends are tax deductible.

Interest and preferred stock dividends are tax-deductible, while common stock dividends are not tax-deductible.

Common stock dividends and preferred stock dividends are tax-deductible, while interest is not tax-deductible.

Common stock dividends and preferred stock dividends are not tax-deductible, while interest is tax-deductible.