Which one of the following is NOT true for a corporation?

Which one of the following is NOT true for a corporation?




A) Interest paid on bonds issued last year is tax deductible.
B) Common-stock dividends to be paid this year are not tax deductible.
C) Common-stock dividends to be paid this year will be tax deductible if the firm has a net loss for the year.
D) Preferred stock dividends to be paid this year are not tax deductible.





Answer: C


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