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If a mutual fund is set up as a corporation, how much of income generated by the fund flows through directly to the shareholders?
Suggested Answer: A
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26 comments · newest first
AN
Antonio
1 month ago
But what about capital gains? D) 50% could be a possibility too.
MI
Miriam
1 month ago
I feel like A) makes sense. Shareholders should get all dividends.
LE
Leonida
2 months ago
I disagree, it's C) None. Corporations have different rules.
JE
Jessenia
2 months ago
I think it's A) 100% of dividends. Seems logical.
SU
Sunshine
2 months ago
I feel like D) 50% of capital gain could be a trick option. Not sure though.
AL
Alyce
2 months ago
I lean towards B) 100% of interest. Interest is usually passed through.
PA
Pamella
2 months ago
I disagree, I believe it's C) None. Corporations have different tax rules.
SH
Sharmaine
2 months ago
I think the answer is A) 100% of dividends. It makes sense for shareholders.
DE
Detra
3 months ago
I'm not sure, but D) 50% of capital gain sounds plausible.
NG
Nguyet
3 months ago
I lean towards B) 100% of interest. Interest is usually passed through.
HI
Hillary
3 months ago
I feel like it's C) None. Corporations have different tax rules.
RE
Reynalda
3 months ago
I think it's A) 100% of dividends. That's how it usually works.
MA
Maryann
3 months ago
B) 100% of interest is also a thing, right?
HE
Hester
4 months ago
Wait, are we sure about that? Sounds too good to be true.
JU
Jutta
5 months ago
Totally agree with A! Dividends flow through.
KR
Kristine
5 months ago
I thought it was C) None. Seems off.
LO
Lonny
5 months ago
A) 100% of dividends is correct!
PE
Pearlie
6 months ago
I disagree, it’s not just dividends that flow through.
HI
Hillary
6 months ago
Wait, really? I didn't know that about mutual funds!
CO
Cordelia
6 months ago
Definitely A) 100% of dividends!
JU
Julian
6 months ago
I thought it was C) None? That seems off.
GL
Gladys
6 months ago
A) 100% of dividends is correct!
MY
My
6 months ago
I thought all income types were taxed at the corporate level first, so I'm leaning towards C as well, but I wish I had more clarity on that.
KR
Kristel
7 months ago
I recall a practice question about capital gains and how they might be treated, but I can't remember if it's 50% or something else.
SI
Sina
7 months ago
I feel like we discussed how dividends are taxed differently, but I'm not sure if that means they flow through 100%.
OC
Ocie
7 months ago
I think I remember that mutual funds as corporations don't pass through income directly to shareholders, so maybe it's C?