Question 6 (2 points) Which of the following statements related to Canadian taxation is correct:

Question 6 options:

A Interest income received by a corporation is tax-free.

B Dividend income received by a Canadian corporation from another Canadian company is taxable.

C Dividend paid out by a corporation is treated as tax deductible expense.

D Interest paid by a corporation is treated as before-tax expense, so it is 100% tax deductible.

Question 7 (2 points) Which of the following items will show a cash inflow (cash flow increase) to the firm:

Question 7 options:

A increase of inventory

B. decrease of marketable securities

C. increase in accounts receivables

D decrease of borrowings from banks

E. increase of fixed assets