Which of the following statements describe the conduit theory of taxation?
I. A fund is not taxed on earnings it distributes provided distributions equal 90% or more of net investment income.
II. Earnings distributed by a regulated investment company are taxed three times.
III. Dividends and interest are passed through to the investor without the fund being taxed.
IV. Dividends and interest accumulate tax free to the shareholder.
Answer: I and III