Provisions of the U.S. Tax Code for Corporations and Individuals Which source of investor income is susceptible to double taxation? Dividends Interest earned Which of the following cash outflows cannot be deducted from the operating income to derive the corporation's taxable income? Interest paid Dividends paid Cold Goose Metal Works owns 79,000 shares in the Fat Fox Smelting Corp.. If Fat Fox Smelters has 100,000 shares of common stock outstanding, can Cold Goose file a single income tax return that reports the incomes and expenses of both companies? No, because Cold Goose Metal Works's ownership stake in Fat Fox Smelters is less than or equal to 79 % , whereas 80 % or more is required by the U.S. Tax Code. Yes, because Cold Goose Metal Works's ownership stake in Fat Fox Smelters is greater than or equal to 80 % , as required by the U.S. Tax Code. No, because Cold Goose Metal Works's ownership stake in Fat Fox Smelters is less than or equal to 40% , whereas 50% or more is required by the U.S. Tax Code. Assume that the tax rate on corporate taxable income up to $50,000 is 15 %%, and 25 % for income levels between $50.001 and $75.000. If the Clumsy and an average tax rate of Chihuahua Music Company has a taxable income of $63,000, then it has a tax liability of A4o Doolc Pro Option #1: Invest in municipal bonds with an expected return of 13.00 % , or Option #2: Invest in the corporate bonds of Jefferson & Alexander Inc. which are offering an expected return of 17.55 % Assume that your decision is based solely on your tax situation. If everything else is the same for both bonds, at what tax rate would you be indifferent between these two bond investments? 28.52% 25.93% O 24.11 % O33.19 % For your personal portfolio, you purchased 1,000 shares of a foreign manufacturing company for $41.00 per share and sold it for $66.00 per share afte18 months. How will your gain or loss be treated when you file your taxes? As a capital gain that will be taxed at the current ordinary income tax rate As a capital gain that will be taxed at the capital gains tax rate