Dozen Corporation Is Owned Equally by Twelve Unrelated Individuals

question 105

Multiple Choice

Dozen Corporation is owned equally by twelve unrelated individuals.Its taxable income this year is $100,000 and its regular federal income tax liability is $22,250.The company claims a $20,000 dividends-received deduction and pays $25,000 dividends to its shareholders.The corporation had accumulated earnings and profits of $900,000 at the end of the preceding year.The company has no reasonable needs of the business.The accumulated earnings tax is

• A)$7,913.
• B)$10,913.
• C)$14,550.
• D)$13,188.

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Definitions:

Third-Country Nationals

are individuals who are employed in a country where they are neither citizens nor permanent residents, often working for multinational companies or international organizations.

Home-Country Nationals

Employees who work for a multinational company within their own country but are involved in international operations.

Parent-Country Nationals

Employees who are citizens of the country where the parent company of their employer is situated, working abroad in the company’s foreign branches.

Expatriate Training

The preparation provided to employees and their families before they go on an international assignment, focusing on cultural, language, and professional aspects.