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:

Sensory Receptors

Specialized cells or neuronal structures that respond to environmental stimuli and transmit signals to the nervous system.

Stimuli

External or internal factors that elicit a physiological or psychological response.

Prosopagnosia

A condition in the nervous system where individuals cannot recognize faces, known as face blindness.

Bottom-up Processing

An approach to information processing based on incoming data from the environment to form a perception.