Which of the following statements concerning taxation is accurate?

a.Corporations pay federal income taxes but not state income taxes.

b.Only the stockholders must pay taxes on corporate income.

c.Corporations pay federal and state income taxes.

d.Corporations pay income taxes but their stockholders do not.

One of the main disadvantages of the corporate form is

a.professional management.

b.the charter.

c.double taxation.

d.that a corporation must issue stock.

The entry to record the issuance of common stock at a price above par includes a credit to

a.Organizational Expenses.

b.Cash.

c.Preferred Stock.

d.Paid-In Capital in Excess of ParCommon Stock.

The number of shares of stock that a corporation can issue as stated in its charter is referred to as

a.outstanding.

b.arrears.

c.issued.

d.authorized.