Which of the following statements about dividends are correct? (Choose all correct answers.)

Question

Accepted Answer

Dividends are paid from retained earnings.

Answer

Dividends are tax deductible for the entities paying them.

Answer

Dividends are tax deductible for shareholders.

Answer

Dividends must be paid regularly every year and have priority over interest payments.

Answer

Shareholders receiving dividends do not need to include them in their taxable income.

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