Which of the following statements concerning taxation is accurate?

I think its B. However, I found conflicting answers when I googled it. What do you think? Thanks

General guidance

Concepts and reason

Taxes: A compulsory contribution to states revenue, imposed by the government of India on the person’s income earned by him and on profits of the companies.
Direct taxes: It is the amount due to the government as direct taxes on the amount of profit earned by the company in a year which is payable in the near future.
Indirect taxes: The taxes imposed on a people levied on goods and services instead of income and profits.

Fundamentals

Corporate Sector: It is the sector of our society which actually comprises of firms and companies.
Income Tax Payable: It is the amount due to the government as direct taxes on the amount of profit earned by the company in a year which is payable in the near future.
Income Tax Expense: This signifies the payment of taxes to the government calculated on the earnings made by the company. The company does book the income tax paid as an expense in the books of accounts prepared during a respective financial year.
Net Income: The resultant amount after reducing all expenses of the company whether direct or indirect for the period from all revenues is termed as net income.
Direct taxes: It is the amount due to the government as direct taxes on the amount of profit earned by the company in a year which is payable in the near future.
Indirect taxes: The taxes imposed on a people levied on goods and services instead of income and profits.

Step-by-step

Step 1 of 2

The corporation pays both federal income taxes as well as the state income taxes.
Only the owner must pay taxes on corporate income is incorrect as any stakeholder can pay taxes on such income.
Corporations pay income taxes and the owners are also paid the taxes on their income received from the corporation.

The corporation is deal with the federal and the state government. The corporation needs to follow the rules and regulations of both the federal and the state government. Thus, the corporation must pay federal and income taxes.
All the stakeholders of the corporation are liable towards the corporation. Any government state or federal want taxes, which is applicable to the particular corporate. It does not matter who can pay the taxes. As per the government, any individual which is related to the corporation can pay the taxes on behalf of the corporation.
As per the separate legal entity principal, the corporate and the individual are two distinct entity. The corporation pays taxes on its income and an individual pays taxes on its income. The dividend expenses for a corporation is an income for the owners. The owners are a liability to pay income taxes on such income. The corporation also needs to pay the taxes on its income.

Use the information related to concerning taxation is accurate to identify the correct option.

Step 2 of 2

A Corporation is required to pay both federal and state taxes on its income.

The corporation must pay both federal and state taxes on its income.

The corporation must pay both federal and state taxes on its income as they are also using the resources of the economy and in return, they must pay the taxes to the government so that the government can also earn revenue in order to maintain its expenses incurred in public welfare.
The rules and regulations of both the federal and the state government are applicable to the corporation. Hence, the corporation is required to pay taxes to both governments.

Answer

The corporation must pay both federal and state taxes on its income.

Answer only

The corporation must pay both federal and state taxes on its income.

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