Tax treatment of payments to securities holder

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Reference no: EM13850130

Regarding the tax treatment of payments to securities holders, it is true that _____.

1. Common stock dividends and preferred stock dividends are not tax –deductible, while interest is tax – deductible

2. Interest and preferred stock dividends are tax – deductible, while common stock dividends are not tax deductible

3. Interest and preferred stock dividends are not tax – deductible, while common stock dividends are tax deductible

4. Common stock dividends and preferred stock dividends are tax- deductible, while interest is not tax – deductible

Reference no: EM13850130

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