Which statement is false with respect to interest and dividends paid by Canadian corporations?

Points: 1

1. Eligible dividends are subject to a larger gross-up and dividend tax credit than non-eligible dividends
2. Interest income from public corporations is summarized on a T5 slip
3. Tax is due on interest income in the year it is earned, not the year it is paid
4. Dividend income is received on stocks and corporate bonds.