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

Bond Interest

The periodic payment made to bondholders, typically a fixed rate of interest paid on the bond's face value.

Tax Purposes

The consideration or treatment of transactions, events, or financial situations in relation to calculating tax liabilities.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.