DAG

问题如下：

Which of the following best describes the taxation of DAG Inc. and DAG LP?

选项：

DAG LP pays tax based on its pre-tax income.

Shareholders of DAG Inc. pay tax based on dividend income.

DAG Inc. pays tax based on its pre-tax income.

解释：

B is correct. DAG Inc. is organized as a special corporate form available in its jurisdiction in which it does not pay corporate income taxes. DAG LP, as a limited partnership, is a pass-through entity. DAG Inc. shareholders pay tax on dividend income.

A is incorrect. DAG LP is a limited partnership. Partnership income is passed through to each partner, and the partners pay tax at the personal level.

C is incorrect. DAG Inc. is organized as a special corporate form available in its jurisdiction in which it does not pay corporate income taxes.