Which statement accurately contrasts pass-through tax regimes with corporate tax regimes for investments' after-tax yield?

• A. Pass-through entities pay corporate taxes at the entity level.
• B. Corporate entities distribute profits tax-free to owners.
• C. Pass-through entities are taxed at the corporate rates.
• D. Pass-through entities pass taxes to owners; corporations are taxed at corporate rates then distributions may be taxed to owners; tax treatment depends on structure and jurisdiction.

Answer: (D)