Question: When a CCPC has a singleowner, from a tax standpoint________. A. the lowest tax cost is usually achieved by distributing earnings as a combination of

When a CCPC has a singleowner, from a tax standpoint________.

A.

the lowest tax cost is usually achieved by distributing earnings as a combination of salary and dividends

B.

less taxes are paid when earnings are distributed as salary

C.

less taxes are paid when earnings are distributed as dividends

D.

the lowest tax cost method of distributing earnings will depend largely on provincial tax policies

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!