Which is a correct statement regarding income taxes?
A. An item of income subjected to final tax can still be subjected to regular tax.
B. An item of income exempted from tax is likewise exempt from capital gains tax and regular income tax
C. An item of income exempted from final tax is nevertheless taxable to regular tax
D. An item of income subjected to the capital gains tax may be subject to regular income tax
Answer: B. An item of income exempted from tax is likewise exempt from capital gains tax and regular income tax