Question: 0. Why does the double taxation problem exist for corporations? A) Corporations earn taxable income, pay taxes on that income, and then pay interest to

0. Why does the double taxation problem exist for corporations? A) Corporations earn taxable income, pay taxes on that income, and then pay interest to the bondholders, who also have net taxable income. B) Corporations earn taxable income and pays taxes on that income. C Firms with depreciation expense must repay the tax deduction over time, in addition to their normal tax liability on taxable corporate income. D) Corporations earn taxable income, pays taxes on that income, and then pay dividends to the stockholders, who also have net taxable income. E) Stockholders are paid a dividend and they have net ta ble income
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