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    College Accounting Study Set 2
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    Exam 20: Corporations and Bonds Payable
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    For a Corporation, Bond Interest
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For a Corporation, Bond Interest

Question 41

Question 41

Multiple Choice

For a corporation, bond interest:


A) is treated the same as dividends for tax purposes.
B) has no effect on earnings and therefore has no effect on income taxes.
C) increases income tax by reducing earnings.
D) None of the above

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